Proactiveinvestors Australia THC Global Group Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia THC Global Group Ltd RSS feed en Thu, 27 Jun 2019 00:12:46 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - THC Global has full suite of cannabis licences to advance farm-to-pharma model ]]> https://www.proactiveinvestors.com.au/companies/news/222818/thc-global-has-full-suite-of-cannabis-licences-to-advance-farm-to-pharma-model-222818.html THC Global Group Ltd (ASX:THC) operates under a farm-to-pharma pharmaceutical model, now holding all three key cannabis licences being a Cannabis Research Licence, a Medicinal Cannabis Licence (Cultivation), and a Manufacture Licence.

The company has secured a significant cannabis growing capacity over multiple cultivation projects and owns a pharmaceuticals bio-manufacturing facility with attached testing and product development laboratory.

Bundaberg cannabis cultivation site manager John Hall. Photo credit: ABC Wide Bay, Kallee Buchanan

THC is in a prime position to commence medicinal cannabis production to service both domestic patients and the global export market.

The company is active globally with operations in Australia, New Zealand, and Canada and partnerships across Europe, Asia, and the Middle East.

In addition to its core Australian medicinal cannabis assets, THC has a significant Canadian presence – both in cannabis and in hydroponics equipment.

 

THC’s Canadian cannabis operation, Vertical Canna, holds property in Nova Scotia, Canada being developed into a large-scale cannabis production site.

The company’s hydroponics equipment division, Crystal Mountain, is a revenue generating manufacturer, wholesaler, and retailer of hydroponics equipment and supplies.

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Wed, 26 Jun 2019 14:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222818/thc-global-has-full-suite-of-cannabis-licences-to-advance-farm-to-pharma-model-222818.html
<![CDATA[News - THC Global's new manufacturing licence a boost for cannabis honey products ]]> https://www.proactiveinvestors.com.au/companies/news/222181/thc-global-s-new-manufacturing-licence-a-boost-for-cannabis-honey-products-222181.html THC Global Group Ltd's (ASX:THC) new medicinal cannabis manufacturing licence provides Eve Investments Limited (ASX:EVE) with the ability to progress research and development of its cannabis honey products.

By way of agreements with THC Global, EVE now has a viable option to access THC's cannabis licensing.

A manufacturing licence, which was granted last week, gives THC Global the full scale of licensing required in Australia for the research and production of medicinal cannabis products.

READ: THC Global granted cannabis Manufacture Licence, shares surge 20%

The agreements with EVE encompass site lease, tea-tree off-take, cannabis off-take, and are directed towards the organic farming operations of THC Global as well as the development of novel tea-tree and cannabis products by both companies.

THC Global is producing a variety of Melaleuca Tea Tree extracts at its Southport facility on behalf of Eve Investments.

THC's chief executive officer Ken Charteris said: “Having now received this manufacture licence we look forward to further progressing our partnership with EVE, particularly with respect to the vast opportunities to develop the next generation of medicinal cannabis products.”

EVE investment director Ben Rohr said: “We are excited to be able to move to the next stage in the research and development of our cannabis honey products via our agreement with THC.

“The granting of this licence is an important step in this process.”

EVE, via its 100% subsidiaries Jenbrook and Meluka Honey, has an agreement with THC Global for the planned growth of cannabis at the site of its tea tree plantation.

Under the agreements EVE will be provided with access to THC Global’s medicinal cannabis for use in product development by Meluka Honey of novel cannabis blended products including incorporation of Melaleuca Tea Tree extract from EVE’s tea tree plantations.

Additionally, THC Global’s current and planned operations in Australia, North America and Asia could positively assist in the production and distribution of proposed Meluka Honey cannabis and tea tree honey products.

With THC Global having secured a manufacturing licence for medicinal cannabis, EVE now has a viable option covering all the medicinal cannabis licensing requirements within Australia to submit a permit for the development of its planned cannabis honey products.

The company has previously leased a portion of organic farmland from EVE for the cultivation of medicinal cannabis.

The leased land is the subject of a medicinal cannabis cultivation licence lodged by THC Global last year, which has now progressed to the ‘assessment phase’ by the Australian Office of Drug Control.

The licence is expected to be received this year and once received THC will be licensed to cultivate medicinal cannabis on EVE’s site with additional expansion into a larger area on the site in progress.

READ: THC Global focuses on building a global cannabis company

THC Global’s manufacture licence receipt is a critical milestone in the joint strategy between EVE and THC Global towards development of medicinal cannabis honey as well as other potential future activities between companies.

EVE has also progressed its R&D program for the production of a specialised melaleuca tea tree extract at THC’s Southport facility.

A variety of extracts have been produced from the leaf of EVE’s old growth melaleuca plantation, which will form the basis of many Meluka Honey’s new products.

The advanced technology available at THC’s Southport facility for botanical extractions is assisting EVE in advancing the pathway to market for its tea tree honey-based products.

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Mon, 17 Jun 2019 10:22:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222181/thc-global-s-new-manufacturing-licence-a-boost-for-cannabis-honey-products-222181.html
<![CDATA[News - THC Global granted cannabis Manufacture Licence, shares surge 20% ]]> https://www.proactiveinvestors.com.au/companies/news/222013/thc-global-granted-cannabis-manufacture-licence-shares-surge-20-222013.html THC Global Group Ltd (ASX:THC) has been granted a Manufacture Licence for production of extracts and tinctures of cannabis and cannabis resin, thereby completing its ‘Farm to Pharma’ vertical integration strategy.

The company can now cultivate its own proprietary strains, process cannabis plant material, and manufacture extracts and tinctures from cannabis.

Granting of this licence to its wholly-owned subsidiary, Canndeo Limited, by the Australian Office of Drug Control represents the third and final cannabis licence required in Australia.

Positive investor response

This prompted a positive response from investors with shares up 20% in early trade to 53 cents.

Chairman, Steven Xu said: “We are very pleased to be granted a Manufacture Licence, which now completes our ‘Farm to Pharma’ model.

“This licence is a significant milestone for the company, with the next targets being the development of a new generation of proprietary medicinal cannabis products and securing our revenue outlook through offtake agreements and furthering our existing global partnerships.”

READ: THC Global Group focuses on building a global cannabis company

Receipt of a Manufacture Licence comes as THC Global prepares to begin delivery of Australian grown, Australian manufactured medicinal cannabis products to domestic patients and the global export market.

The company and its subsidiaries now hold all three cannabis production licences - Cannabis Research Licence, Medicinal Cannabis Licence (Cultivation) and Manufacture Licence.

READ: THC Global shares rise after securing medicinal cannabis export licence

Medicinal cannabis cultivation activities are already being carried out at the Strain R&D and Manufacturing Facility in Bundaberg, Queensland, operated by Canndeo.

The Manufacture Licence will enable Canndeo to apply for a permit to allow its own plant material to be used in its newly licensed manufacturing facility.

THC Global has secured significant cannabis growing capacity over multiple cultivation projects and owns a pharmaceuticals bio-manufacturing facility with attached testing and product development laboratory.

READ: THC Global raises nearly $3 million to fund transition into full-scale medicinal cannabis production

The company is in prime position to begin medicinal cannabis production to service domestic patients and the global export market.

It is active globally with operations in Australia, New Zealand and Canada, and partnerships across Europe, Asia and the Middle East.

Growing Canadian presence

In addition to its core Australian medicinal cannabis assets, THC Global has a significant Canadian presence – both in cannabis and in hydroponics equipment.

The Canadian cannabis operation, Vertical Canna, holds property in Nova Scotia which is being developed into a large-scale cannabis production site.

Hydroponics equipment division Crystal Mountain is a revenue generating manufacturer, wholesaler, and retailer of hydroponic equipment and supplies.

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Thu, 13 Jun 2019 10:53:00 +1000 https://www.proactiveinvestors.com.au/companies/news/222013/thc-global-granted-cannabis-manufacture-licence-shares-surge-20-222013.html
<![CDATA[Media files - THC Global granted manufacturing licence by Australian Office of Drug Control ]]> https://www.proactiveinvestors.com.au/companies/stocktube/13721/thc-global-granted-manufacturing-licence-by-australian-office-of-drug-control-13721.html Wed, 12 Jun 2019 20:59:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/13721/thc-global-granted-manufacturing-licence-by-australian-office-of-drug-control-13721.html <![CDATA[News - THC Global has news pending on grant of a Manufacture Licence by Office of Drug Control ]]> https://www.proactiveinvestors.com.au/companies/news/221936/thc-global-has-news-pending-on-grant-of-a-manufacture-licence-by-office-of-drug-control-221936.html THC Global Group Ltd (ASX:THC) is in a trading halt with an announcement pending with respect to the grant of a Manufacture Licence by the Office of Drug Control (ODC).

The halt will remain in place until the start of normal trading on the ASX on Friday, June 14, 2019, or when an announcement is released to the market.

Shares last traded this morning before the halt at 44 cents, up more than 2% on Tuesday's close.

READ: THC Global Group focuses on building a global cannabis company

THC Global is focused on building a global, diversified and vertically integrated cannabis company reflecting newer and greater opportunities.

Addressing the company’s recent annual general meeting, chairman Steven Xu said that with key infrastructure secured to begin the manufacturing within Australia of high-grade pharmaceutical cannabis products, the company was entering the lucrative Canadian cannabis market.

READ: THC Global raises nearly $3 million to fund transition into full-scale medicinal cannabis production

He said: “We are also continuing to expand our hydroponics equipment business, Crystal Mountain, based in Vancouver into the UK and European markets.

“Compared to our peers, we see THC Global as being in prime position to be a significant competitor within the global cannabis sector as we have secured large-scale assets, experienced talent and key commercial partnerships.

“This allows us to structure our future business growth towards near-term strong revenue generation.

“Within Australia we have commenced operations under our medicinal cannabis licences for R&D and cultivation at our Strain R&D and second manufacturing site in south-eastern Queensland.

“This site is also awaiting a manufacturing licence to allow for smaller-scale manufacturing to complement the existing R&D and cultivation programs at the site.”

READ: THC Global shares rise after securing medicinal cannabis export licence

Earlier this year, THC Global was granted a medicinal cannabis export licence by the Australian ODC.

This is a key milestone in developing a future export pathway of THC Global’s Australian cannabis and places the company in an increasingly stronger position to take advantage of its industry leading manufacturing capability and its global reach.

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Wed, 12 Jun 2019 15:06:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221936/thc-global-has-news-pending-on-grant-of-a-manufacture-licence-by-office-of-drug-control-221936.html
<![CDATA[News - THC Global Group focuses on building a global cannabis company ]]> https://www.proactiveinvestors.com.au/companies/news/221003/thc-global-group-focuses-on-building-a-global-cannabis-company-221003.html THC Global Group Ltd (ASX:THC) is focused on building a global, diversified and vertically integrated cannabis company reflecting newer and greater opportunities.

In addressing the annual general meeting today, chairman Steven Xu reviewed the company’s past year and provided an outlook for the year ahead.

With key infrastructure secured to begin the manufacturing processing within Australia of high-grade pharmaceutical cannabis products, Xu said the company was entering the lucrative Canadian cannabis market.

READ: THC Global shares rise after securing medicinal cannabis export licence

“We are also continuing to expand our hydroponics equipment business, Crystal Mountain, based in Vancouver into the UK and European markets,” he said.

“Compared to our peers, we see THC Global as being in prime position to be a significant competitor within the global cannabis sector as we have secured large-scale assets, experienced talent and key commercial partnerships.

“This allows us to structure our future business growth towards near -erm strong revenue generation.

“Within Australia we have commenced operations under our medicinal cannabis licences for R&D and cultivation at our Strain R&D and second manufacturing site in south-eastern Queensland.

“This site is also awaiting a manufacturing licence to allow for smaller-scale manufacturing to complement the existing R&D and cultivation programs at the site.”

READ: THC Global raises nearly $3 million to fund transition into full-scale medicinal cannabis production

Xu emphasised the key infrastructure areas which have been secured for sale into the domestic and global markets:

Manufacturing facility in Southport, Queensland; The increased capacity cultivation site in northern NSW; and The Strain R&D and secondary manufacturing site in southeast Queensland.

Xu added: “THC Global has been advised that both manufacturing licence applications are progressing, with one application currently before a delegate of the Health Ministry for review and the second soon to reach the same final review stage.

READ: THC Global Group progresses core drivers of revenue growth

“Accordingly, we expect the granting of these two manufacturing licences in the near-term with the receipt of these licences completing THC Global’s vertical integration strategy – allowing for true ‘Farm to Pharma’ cannabis production by THC Global within Australia.

“We have also begun the development of global supply pathways including international government liaison as well as patient, pharmacy and prescriber education and engagement through securing partners with complementary sectors.

“Our first step in executing our Asian market strategy was our partnership with a bio-tech and agri-tech firm in Malaysia, which has been progressing well to date.” 

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Tue, 28 May 2019 14:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221003/thc-global-group-focuses-on-building-a-global-cannabis-company-221003.html
<![CDATA[News - THC Global shares rise after securing medicinal cannabis export licence ]]> https://www.proactiveinvestors.com.au/companies/news/220263/thc-global-shares-rise-after-securing-medicinal-cannabis-export-licence-220263.html THC Global Group Ltd’s (ASX:THC) shares are trading about 8% higher intra-day after being granted a medicinal cannabis export licence by the Australian Office of Drug Control (ODC).

Securing this licence is a key milestone in developing a future export pathway of THC Global’s Australian cannabis and places the company in an increasingly stronger position to take advantage of its industry leading manufacturing capability and its global reach.

Northern NSW cultivation – increased cultivation capacity

THC Global has confirmed its binding intention with EVE Investments Ltd (ASX:EVE) to lease additional USDA certified organic land to bring the total leased land for the Northern NSW cannabis cultivation site up to a potential 150,000 square metres.

The lease is subject to THC Global confirming that the additional land is suitable for lodgement of a cultivation licence application with the ODC.

READ: THC Global raises nearly $3 million to fund transition into full-scale medicinal cannabis production

The currently leased 60,000 square metre land is the subject of a medicinal cannabis cultivation licence lodged by THC Global last year, which has now progressed to “assessment phase” by the ODC and is expected to be received this year.

Receipt of this licence will allow for the first part of the extended project to commence which is expected to deliver biomass for production at THC Global’s biopharmaceutical manufacturing facility as well as for supply to EVE under an off-take agreement for Meluka Health’s proposed cannabis honey product.

Product development at manufacturing facility

THC Global has received in-principle advice from the Therapeutic Goods Administration (TGA) advising that subject to relevant licencing and approval of procedures, both cannabis and non-cannabis products will be able to be produced from the company’s Queensland bio-pharmaceuticals extraction facility.

This will provide THC Global with the ability to monetise excess production capacity through extraction of other botanicals for medical, pharmaceutical, or nutraceutical purposes as the company progressively increases cannabis extraction activities.

READ: THC Global Group progresses core drivers of revenue growth

Successful pilot-scale extraction of tea-tree product has been completed for EVE as part of the collaboration agreement with THC Global.

The potential to conduct other complex botanical extractions at large scale is being explored, which may enable the formulation of novel cannabis-blended products for sale into other markets.

EVE partnership

THC Global remains committed to the cannabis off-take agreement with EVE whereby EVE will be able to purchase cannabis cultivated at the Northern NSW site for producing cannabis honey products under their Meluka Health brand.

Additionally, THC Global’s expansion into new markets such as Canada, New Zealand, and the Asian region may provide stronger routes to market for EVE’s cannabis honey product whilst also expanding THC Global’s product offering internationally.

READ: THC Global acquires site in Canada for cannabis production

THC Global chief executive officer Ken Charteris said: “We are pleased to be able to secure additional land for our cannabis cultivation activities on EVE’s USDA certified organic land in Northern NSW.

“We will formally commit to the lease and settle terms upon confirmation that THC Global will be able to receive a medicinal cannabis cultivation licence over this extension.

“Additionally, our success in using our bio-pharmaceutical manufacturing facility for other complex botanical extractions, including EVE’s tea-tree product, confirms that we may be able to explore the development of novel cannabis-blended formulations in the near future.”

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Wed, 15 May 2019 10:20:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220263/thc-global-shares-rise-after-securing-medicinal-cannabis-export-licence-220263.html
<![CDATA[News - THC Global raises nearly $3 million to fund transition into full-scale medicinal cannabis production ]]> https://www.proactiveinvestors.com.au/companies/news/219740/thc-global-raises-nearly-3-million-to-fund-transition-into-full-scale-medicinal-cannabis-production-219740.html THC Global Group Ltd (ASX:THC) has confirmed that the final amount raised in its share purchase plan conducted in April this year totalled $2.983 million from a total of 545 applicants.

The company yesterday issued 5.967 million fully paid ordinary shares at an issue price of 50 cents a share to conclude the purchase plan.

Funds raised will be used to progress THC’s Australian medicinal cannabis activities as it transitions to full-scale production, as well as general working capital.

READ: THC Global Group progresses core drivers of revenue growth

The Australian cannabis company is awaiting final licencing and permitting approvals for a Canadian facility now owned by subsidiary Canndeo, which it plans to progress to a full-scale operation as part of a farm-to-pharma business model.

Cultivation activities at the Canndeo research and development facility have started following receipt of the relevant permits.

A manufacturing licence for the site is likely to facilitate product validation and study trial production.

READ: THC Global’s Canadian division boosts revenue 22% in March quarter

In November last year, THC supplied Endoca CBD products to its first prescribed patients.

The supply verified THC Global’s pathway from manufacturer to patient under federal authorised prescriber and special access schemes and state regulations.

THC imports four products from Endoca’s range: Endoca’s CBD oil in 3% and 15% concentrations; and Endoca’s unique CBD-plus-CBDa oils, also in 3% and 15% concentrations.

The company is also exploring strategic opportunities in Asia.

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Mon, 06 May 2019 20:10:00 +1000 https://www.proactiveinvestors.com.au/companies/news/219740/thc-global-raises-nearly-3-million-to-fund-transition-into-full-scale-medicinal-cannabis-production-219740.html
<![CDATA[News - THC Global Group progresses core drivers of revenue growth ]]> https://www.proactiveinvestors.com.au/companies/news/218812/thc-global-group-progresses-core-drivers-of-revenue-growth-218812.html THC Global Group Ltd (ASX:THC) (FRA:9TH) (OTCMKTS:HDRPF) specialises in medicinal cannabis supply and development as well as hydroponics equipment manufacturing and distribution. It was previously known as The Hydroponics Company Ltd and is run by Ken Charteris, group chief executive officer, with three decades of experience in biotechnology and pharmaceutical company leadership.

He has managed companies with revenues of more than $200 million and asset bases of up to $500 million. Charteris is instrumental in executing the company’s strategic plan and is focused on acquisitions and alliances for the dual-listed group.

What is THC Global progressing?

THC Global is a rapidly growing company which went from having $1.1 million issued capital on January 1, 2017, to $23 million of issued capital on December 31 last year.

Growth in the company's issued capital last year was $5.5 million or 32%.

The company is awaiting final licensing and permitting approvals for a Canadian facility now owned by subsidiary Canndeo and noted in February 2019 it plans to progress to a full-scale operation as part of a farm-to-pharma business model.

The Australian company’s main pharmaceuticals focus is on the development and delivery of cannabidiol (CBD) products to the Australian and New Zealand markets, and the Canadian markets through wholly-owned subsidiary Vertical Canna Inc.

THC Global plans to build out a vertically integrated cannabis business across North America through Vertical Canna, using an aquisitions and partnerships model.

Vertical Canna directed efforts in 2018 towards developing a retail cannabis and equipment brand for sales in Canadian stores.

In November 2018 THC Global supplied Endoca CBD products to its first prescribed Australian patients.

The supply verified THC Global’s product pathway from manufacturer to patient under federal authorised prescriber and special access schemes and state regulations.

THC Global imports four products from Endoca’s range: Endoca’s CBD oil in 3% and 15% concentrations; and Endoca’s unique CBD-plus-CBDa oils, also in 3% and 15% concentrations.

The company is also exploring strategic opportunities in Asia.

THC Global has begun cultivation activities at its Canndeo R&D facility in Canada, having received the relevant cultivation permits. A manufacturing licence for the site is likely to facilitate product validation and study trial production.

On the group’s existing manufacturing front, a second core company activity is in the manufacture and distribution of hydroponics equipment, materials and nutrients.

Group CEO Ken Charteris is executing the company’s strategic vision and has advanced it over the past 2.5 years by driving the acquisition of THC Global’s existing manufacturing facility and securing commercial partnerships with Endoca (Europe) and Ascent Industries (North America).

THC Global’s hydroponics equipment subsidiary Crystal Mountain expects to grow significantly as the business enters the retail market to supply equipment to micro-cultivators and new markets.

The company’s bio-manufacturing facility, acquired less than a year ago, was valued at $2.55 million on a May 1 transaction date and now has a balance sheet value of more than $16 million.

Last Wednesday THC Global reported the company’s Canada-based hydroponics equipment division Crystal Mountain was in the process of securing distribution agreements after expansions into Europe and the United Kingdom.

The group launched a share share purchase plan (SPP) on April 9, 2019 offering shareholders to apply for up to $15,000 worth of additional shares priced at 50 cents each.

THC Global flagged last Thursday the closing date for subscriptions is this Friday, April 26, 2019.

Shareholders on the company’s register on April 4, 2019 can take part in the offer. New shares are expected to be quoted on the Australian Securities Exchange on May 6, 2019.

THC Global said on Friday its directors and CEO had confirmed they would participate in the company's capital raising.

What are THC Global's financials?

THC Global’s revenues for the 2018 fiscal year grew $820,103, or 45%, to $2.7 million, when compared to the prior financial year — the 2017 fiscal year.

Cost of goods sold increased $838,433, or 79%, to $1.9 million in the 2018 fiscal year.

Gross profit declined by $18,330, or 2%, to $759,758 in 2018. Total comprehensive profit came in at $1.7 million for the year, a $4.3 million or 167% improvement on the $2.6 million total comprehensive loss of 2017.

The overall result was partly due to a $10.3 million gain on the revaluation of land and buildings, net of tax.

THC Global then ended 2018 with $6.3 million cash.

The company expected $2.2 million of expenses in the March quarter as it directed $638,000 to product manufacturing and operating costs.

THC Global's next quarterly report and corporate update is likely to be posted by April 30, 2019.

Inflection points

Regulatory approvals progress in Australia and Canada

Increased legitimacy and success of medicinal cannabis markets and ongoing investor support

Expansion of cannabidiol export markets to additional markets in Asian countries

Pharmaceutical industry mergers, acquisitions and strategic partnerships, related to THC Global and more broadly

Growth of Crystal Mountain and other subsidiaries in line with the emergence of newly-opened medicinal cannabis markets

Global group CEO Ken Charteris pleased with revenue-driving growth

“We are pleased to see our hydroponics equipment division continue to grow, particularly through our partnership strategy as we are able to expand our product offering and broaden our market reach – both of which are core drivers of revenue growth,” THC Global group CEO Ken Charteris said last Wednesday in a hydroponics equipment operations update.

Charteris had said in January the company had installed “first plants on site at our manufacturing and cultivation site, and look forward to commencing the first stage of our manufacturing activities to support the domestic market with a view to our larger facility being used to pursue export opportunities.”

 

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Tue, 23 Apr 2019 18:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218812/thc-global-group-progresses-core-drivers-of-revenue-growth-218812.html
<![CDATA[News - THC Global directors and CEO to participate in SPP ]]> https://www.proactiveinvestors.com.au/companies/news/218806/thc-global-directors-and-ceo-to-participate-in-spp-218806.html THC Global Group Ltd (ASX:THC) has revealed that its directors and CEO have confirmed they will participate in the share purchase plan (SPP) that is underway.

Under the SPP, eligible shareholders can subscribe for up to $15,000 worth of shares priced at 50 cents.

The SPP offer is expected to close on Friday, 26 April 2019 after it opened 9 April 2019.

READ: THC Global's Canadian division boosts revenue 22% in March quarter

In a letter to shareholders on 9 April, THC’s chairman Steven Xu said: “The funds raised from the Share Purchase Plan will be applied to progress the company’s Australian medicinal cannabis activities as it transitions into full-scale production as final licences and permits are received in the near term, as well as general working capital.”

The company also released its April 2019 briefing note earlier this month, which it distributed to shareholders yesterday.

The briefing note highlighted the near term outlook for the company which included the receipt of final Australian cannabis licenses and permits enabling two manufacturing facilities and cultivation sites.

At its manufacturing facility, it is working towards first validation production, which aims to lead to high-value profitable production of up to 120,000 kilograms of oil at full capacity.

Furthermore, in the April briefing note, THC listed signing key offtake agreements for products and securing cannabis supply through domestic production in its near term outlook.

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Thu, 18 Apr 2019 11:11:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218806/thc-global-directors-and-ceo-to-participate-in-spp-218806.html
<![CDATA[News - THC Global's Canadian division boosts revenue 22% in March quarter ]]> https://www.proactiveinvestors.com.au/companies/news/218732/thc-global-s-canadian-division-boosts-revenue-22-in-march-quarter-218732.html THC Global Group Ltd's (ASX:THC) Canadian hydroponics equipment division Crystal Mountain increased revenue in the March quarter primarily due to stronger sales in the lighting and lighting equipment product ranges.

Crystal Mountain grew revenue to $991,000, a 22% increase on the previous quarter. 

New distribution agreements

The division is also securing distribution agreements within Canada and has expanded into Europe and the United Kingdom.

READ: THC Global Group expands into Asia with partnership

As these distribution agreements are settled and products come on sale, the company expects to see stronger sales in these regions.

Expanded product range

Crystal Mountain has expanded its product range through distributing new products imported from partners across Canada, and soon internationally.

The division is also exploring new sales channels including online cannabis-focused offerings targeted to the micro-cultivator market, which is rapidly increasing in Canada.

THC Global chief executive officer Ken Charteris said: “We are pleased to see our hydroponics equipment division continue to grow, particularly through our partnership strategy as we are able to both expand our product offering and broaden our market reach - both of which are core drivers of revenue growth.”

READ: THC Global Group opens SPP and notes near term milestones

Earlier this month THC Global opened a share purchase plan offering shareholders to apply for up to $15,000 worth of additional shares at 50 cents each.

The company also released its April 2019 briefing note, which highlighted the near-term outlook for the company including the receipt of final Australian cannabis licenses and permits enabling two manufacturing facilities and cultivation sites.

Near-term outlook

It also listed signing key offtake agreements for products and securing cannabis supply through domestic production in its near-term outlook.

In addition to its core medicinal cannabis business, THC Global owns two Canadian companies - Crystal Mountain Products and Vertical Canna Inc.

Crystal Mountain is a revenue-generating global hydroponics retailer and distributor of equipment, material, and nutrients to cannabis growers and producers.

Vertical Canna is an investment vehicle through which THC Global intends to build, through acquisitions and strategic partnerships, a vertically integrated Canadian cannabis producer and retailer.

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Wed, 17 Apr 2019 13:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218732/thc-global-s-canadian-division-boosts-revenue-22-in-march-quarter-218732.html
<![CDATA[News - THC Global Group opens SPP and notes near term milestones ]]> https://www.proactiveinvestors.com.au/companies/news/218272/thc-global-group-opens-spp-and-notes-near-term-milestones-218272.html THC Global Group Ltd (ASX:THC) yesterday opened its share purchase plan (SPP) offering shareholders to apply for up to $15,000 worth of additional shares priced at 50 cents each.

In a letter to shareholders, THC’s chairman Steven Xu said: “The funds raised from the Share Purchase Plan will be applied to progress the company’s Australian medicinal cannabis activities as it transitions into full-scale production as final licences and permits are received in the near term, as well as general working capital.”

The company also released its April 2019 briefing note, which it distributed to shareholders yesterday.

READ: THC Global Group expands into Asia with partnership

The briefing note highlighted the near term outlook for the company which included the receipt of final Australian cannabis licenses and permits enabling two manufacturing facilities and cultivation sites.

At its manufacturing facility, it is working towards first validation production, which aims to lead to high-value profitable production of up to 120,000 kilograms of oil at full capacity.

Furthermore, in the April briefing note, THC listed signing key offtake agreements for products and securing cannabis supply through domestic production in its near term outlook.

A global, diversified, vertically integrated cannabis company

THC Global is a diversified cannabis company with primary operations in Australia, New Zealand and Canada.

The company’s medicinal cannabis model is based on a vertically integrated ‘Farm-to-Pharma’ approach across research and development, cultivation and pharma-grade manufacturing.

THC Global also operates a hydroponics equipment business based in Canada servicing North America and Europe.

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Wed, 10 Apr 2019 08:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218272/thc-global-group-opens-spp-and-notes-near-term-milestones-218272.html
<![CDATA[News - THC Global Group launches SPP ahead of final licensing ]]> https://www.proactiveinvestors.com.au/companies/news/218088/thc-global-group-launches-spp-ahead-of-final-licensing-218088.html THC Global Group Ltd (ASX:THC) has launched a share purchase plan (SPP) allowing shareholders to apply for up to $15,000 worth of shares priced at 50 cents.

The SPP opens tomorrow and will close on 26 April 2019.

The company sees the offer as an opportunity for shareholders to purchase discounted shares prior to the expected receipt of final licencing.

THC’s chairman Steven Xu said: “With this share purchase plan we are offering our loyal shareholders the opportunity to purchase shares at a discount to the current market price, in advance of the expected final licencing required to transition into full-scale medicinal cannabis production.”

READ: THC Global Group expands into Asia with partnership

Last Friday, THC secured a mutually exclusive partnership with Malaysian agri-tech company Heleogenics Sdn Bhd.

The deal represents a significant first step in the company’s Asian markets strategy.

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Mon, 08 Apr 2019 08:26:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218088/thc-global-group-launches-spp-ahead-of-final-licensing-218088.html
<![CDATA[News - THC Global Group expands into Asia with partnership ]]> https://www.proactiveinvestors.com.au/companies/news/218012/thc-global-group-expands-into-asia-with-partnership-218012.html THC Global Group Ltd (ASX:THC) has secured a mutually exclusive partnership with Malaysian agri-tech company Heleogenics Sdn Bhd.

This represents a significant first step in the company’s Asian markets strategy.

The partnership with Heleogenics is initially to liaise with the Malaysian government towards the legalisation of medicinal cannabis in Malaysia.

The two will then explore other nations within Asia and the Middle East where there may be opportunities for THC Global to enter the medicinal cannabis market.

READ: THC Global acquires site in Canada for cannabis production

THC Global’s CEO Ken Charteris said: “Working with the Heleogenics team, who are leaders in the bio-tech and agri-tech sector within Asia brings a significant wealth of experience both within government liaison in addition to broadening the company’s research and development capabilities.

“In securing commercial partnerships with established businesses like Heleogenics within Asia, we are able to enter markets in an accelerated manner as soon as legislative changes are made, ensuring a first-to-market approach with significantly lower capital outlay than operating solely.”

Heleogenics is a valuable partner

Heleogenics is associated with Sengenics, a global medical bio-tech company primarily focussed on proteomics for medical diagnostics and the development of novel therapies.

Sengenics’s shareholders include SBI Holdings (SoftBank) and Insas Berhad.

The partnership will also encompass exploration of the significant agri-tech experience in plant genomics of Heleogenics, as well as THC’s expertise and IP in medicinal cannabis.

THC’s scope of activity in Asia includes developing patient access, doctor and patient engagement, off-take agreements and sales, R&D, and IP commercialisation.

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Fri, 05 Apr 2019 10:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/218012/thc-global-group-expands-into-asia-with-partnership-218012.html
<![CDATA[News - THC Global acquires site in Canada for cannabis production ]]> https://www.proactiveinvestors.com.au/companies/news/217174/thc-global-acquires-site-in-canada-for-cannabis-production-217174.html THC Global Group Ltd (ASX:THC) has completed the acquisition of a Canadian company in the process of becoming a licenced cultivator at a site in Nova Scotia, Canada.

THC Global intends to stage the development of the project with the first stage focussed on delivering profitability in the near term, with an expected 37,000 kilograms annual dried cannabis flower production volume.

Additional development will see both an increase in cultivation capacity as well as on-site processing capability to create value-added cannabis products for the Canadian market.

READ: THC Global’s focus on vertical integration is beginning to show dividends: The Green Fund

The current price of cannabis in Canada is C$7.12 per gram hence the company’s 37,000-kilogram annual production volume will be worth an expected C$273 million (about $287 million).

The proposed initial stage facility is expected to have a footprint of 20,000 square feet, however, the total size of the land acquired is about 4 acres allowing for significant scalability of THC Global’s operations at this location.

Negotiations for off-take agreements are also underway for both initial dried flower production and for proposed value-added manufacturing of cannabis into other products.

READ: THC Global grows 32% in 2018 after acquisitions and approvals

THC Global chief executive officer Ken Charteris said: “THC Global entering the Canadian cannabis market as a local producer is significant step in its global strategy.

“By identifying the right asset and securing the right team, we will now be able to enter this market with limited upfront capital outlay.

“The first stage of the project is targeted to deliver near term profitability, and we are already in negotiations to secure off-take agreements.

“The second stage development of the facility will add significant value to the company, allowing it to take advantage of lucrative business opportunities within the region.”

Purchase price

The acquisition price for 10034622 Canada Inc, the holding company for the Nova Scotia property and the applicant for the licenced cultivator status is in aggregate 450,000 shares in THC Global and C$200,000.

Securing expertise in Canada for cannabis business development

THC Global has appointed Jonathon Inkley, a construction and project management expert with significant experience in the Canadian cannabis sector as a director of Vertical Canna, THC Global’s Canadian subsidiary which has acquired 10034622 Canada Inc.

READ: THC Global Group progressing to full-scale domestic operations

THC Global also has an Australian cannabis facility in development in New South Wales, which when completed, will produce an additional 50,000 kilograms of dried cannabis flower.

Total production volume of dried cannabis flower only across THC Global’s three cultivation projects when completed and in production will be more than 88,000 kilograms per annum without considering new agricultural technologies.

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Tue, 26 Mar 2019 12:43:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217174/thc-global-acquires-site-in-canada-for-cannabis-production-217174.html
<![CDATA[News - THC Global Group shares halted ahead of acquisition details ]]> https://www.proactiveinvestors.com.au/companies/news/217070/thc-global-group-shares-halted-ahead-of-acquisition-details-217070.html THC Global Group Ltd (ASX:THC) has been granted a trading halt by the ASX pending the release of details regarding the completion of an acquisition in Nova Scotia, Canada.

Shares will likely remain halted until the earlier of either, the release of relevant details, or, the commencement of trading tomorrow.

READ: THC Global’s focus on vertical integration is beginning to show dividends: The Green Fund

Earlier this month, The Green Fund wrote a piece titled ‘THC Global – an extraction powerhouse?’

The Green Fund is a global research house that is primarily focused on the marijuana industry.

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Mon, 25 Mar 2019 12:23:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217070/thc-global-group-shares-halted-ahead-of-acquisition-details-217070.html
<![CDATA[News - THC Global’s focus on vertical integration is beginning to show dividends: The Green Fund ]]> https://www.proactiveinvestors.com.au/companies/news/216152/thc-globals-focus-on-vertical-integration-is-beginning-to-show-dividends-the-green-fund-216152.html THC Global Group Ltd (ASX:THC) is a medicinal cannabis producer with a vertically integrated business model and a farm-to-pharma strategy that aims to corner all aspects of the cannabis market.

Having secured both a significant cultivation capacity over two grow sites, and an industry-leading pharmaceuticals bio-manufacturing facility with attached testing and product development laboratory, THC is in prime position to service both domestic patients and the export market.

The following is an extract from an analyst report by The Green Fund, a global research house primarily focused on the cannabis industry:

THC operate a number of different subsidiaries, which have been structured to take advantage of their growing global strategy.

Canndeo

Canndeo is their Australian entity that has ODC-issued licenses and permits for both cultivation and Research & Development.

The permits are what separates THC from many of the other players who don’t have proper security cleared sites with suitable staff in order to be granted permits to commence cultivation/R&D under the respective licences.

THC Pharma and THC Pharma (NZ)

Then there is THC Pharma, their full-scale, Pharma-grade, extraction and research facility in Southport.

This state-of-the-art bio-flora extraction facility gives THC the ability to produce the highest purity, pharmaceutical-grade extracts.

Vertical Canna Inc.

Having legalised for adult recreational use in October last year, the Canadian recreational market has been booming.

There is a serious under-supply of legal recreational cannabis in Canada, and every Licensed Producer is producing as fast as it can to service this market.

THC Global has recognised this need and have launched their Canadian subsidiary, Vertical Canna Inc.

The company is gearing up to be a vertically-integrated Licensed Producer in the recreational, medicinal and nutraceutical markets that will also act as their investment entity for other vertically-integrated Canadian cannabis assets they may wish to acquire.

Crystal Mountain

And finally, they have Crystal Mountain, the company’s North American based hydroponics equipment and supplies retailer, and distributor.

This business subsidiary is already revenue generating and accounts for most of THC’s current revenue.

Many people forget about the ancillary market when they consider the cannabis industry, but there is much growth to be had in this area.

Vertical Integration

According to the CEO of THC Global, Ken Charteris, the company’s focus on vertical integration is beginning to show dividends as it transitions into manufacturing for the domestic market.

Charteris is a veteran of multiple biotech and pharmaceutical companies and clearly identifies with the issues facing the Australian medicinal market.

However, he is also quick to point out areas and changes that would drive escalation in patient growth and product demand.

Although THC has yet to finalise the growing permits for its’ NSW cultivation facility, the company’s international subsidiaries mean that it is one of the few Australian cannabis stocks that is currently turning a profit.

The jewel in the crown

It’s this fourth facility that potentially may have the greatest impact on the company’s fortunes in the short-term, particularly the next 24 months: their manufacturing plant and Validation Labs in Southport, Brisbane.

Although the facility is small, its’ output is anything but.

The cultivation plant is capable of producing up to 120,000 kilograms of oil per annum, while its’ ethanol based extraction facility, is built to cater to the extracts and concentrates market.

And it is clear as day how favourable we are on this sector.

The Bottom Line

Shares in THC Global reached an early high in 2018, hitting $1.00 a piece at the start of January.

However, the cannabis stock then proceeded to enter a year-long downward spiral before hitting an eventual low in December of $0.41.

The share price drop was caused in part by an industrywide decline that continued for much of 2018, as nervous investors abandoned their long position in favour of a staggered sell-off.

While this may seem like bad news for the cannabis manufacturer, the market appears to be generally bullish about the pot stock’s chances for 2019.

THC is expected to rebound on the back of future announcements from the company—such as further license approvals or international partnership agreements—which will likely cause a spike in share prices.

Disclaimer: This report is for general information purposes only. The Green Fund produced this report on behalf of the company described in this report and received fees on commercial terms for the production of this report.

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Mon, 11 Mar 2019 16:57:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216152/thc-globals-focus-on-vertical-integration-is-beginning-to-show-dividends-the-green-fund-216152.html
<![CDATA[News - THC Global grows 32% in 2018 after acquisitions and approvals ]]> https://www.proactiveinvestors.com.au/companies/news/215672/thc-global-grows-32-in-2018-after-acquisitions-and-approvals-215672.html THC Global Group Ltd (ASX:THC) (FRA:9TH) (OTCMKTS:HDRPF) specialises in medicinal cannabis supply and development and hydroponics equipment manufacturing and distribution. It was previously known as The Hydroponics Company Ltd and is run by Ken Charteris, group chief executive officer, with three decades experience in biotechnology and pharmaceutical company leadership.

He has managed companies with revenues of more than $200 million and asset bases of up to $500 million. Charteris is instrumental in executing the company’s strategic plan and is focused on acquisitions and alliances for the dual-listed group.

What does THC Global own?

THC Global is a rapidly growing company which went from having $1.1 million issued capital on January 1, 2017, to $23 million of issued capital on December 31 last year.

Growth in issued capital last year was $5.5 million or 32%.

The Australian company’s main pharmaceuticals focus is on the development and delivery of cannabidiol (CBD) products to the Australian and New Zealand markets, and the Canadian markets through wholly-owned subsidiary Vertical Canna Inc.

In November now-THC supplied Endoca CBD products to its first prescribed Australian patients.

The supply verified THC’s product pathway from manufacturer to patient under federal authorised prescriber and special access schemes and state regulations.

THC imports four products from Endoca’s range: Endoca’s CBD oil in 3% and 15% concentrations; and Endoca’s unique CBD-plus-CBDa oils, also in 3% and 15% concentrations.

The company is also exploring strategic opportunities in the Asian region.

It is transitioning into a full-scale domestic operation having secured most of the licensing and permitting approvals it needs to implement its farm-to-pharma business model.

THC has already begun cultivation activities having received permits for the cultivation and R&D site owned by its subsidiary Canndeo.

A manufacturing licence for this site is expected to facilitate product validation and study trial production.

On the group’s existing manufacturing front, a second core company activity is in the manufacture and distribution of hydroponics equipment, materials and nutrients.

Group CEO Ken Charteris is executing the company’s strategic vision and has advanced it over the past 2.5 years by driving the acquisition of THC’s existing manufacturing facility and securing commercial partnerships with Endoca (Europe) and Ascent Industries (North America).

THC Global’s hydroponics equipment subsidiary Crystal Mountain expects to grow significantly as the business enters the retail market to supply equipment to micro-cultivators and new markets.

The company’s bio-manufacturing facility, acquired less than a year ago, was valued at $2.55 million on a May 1 transaction date and now has a balance sheet value of more than $16 million.

THC’s revenues for the 2018 fiscal year grew $820,103, or 45%, to $2.7 million, when compared to the prior financial year — the 2017 fiscal year.

Cost of goods sold increased $838,433, or 79%, to $1.9 million in the 2018 fiscal year.

Gross profit declined by $18,330, or 2%, to $759,758 in 2018.

Total comprehensive profit came in at $1.7 million for the year, a $4.3 million or 167% improvement on the $2.6 million total comprehensive loss of 2017.

The overall result was partly due to a $10.3 million gain on the revaluation of land and buildings, net of tax.

THC expects $2.2 million of cash outflows in the March quarter as it directs $638,000 to product manufacturing and operating costs.

The company ended 2018 with $6.3 million cash.

Inflection points Regulatory approvals progress in Australia Increased legitimacy and success of medicinal cannabis markets and ongoing investor support Expansion of cannabidiol export markets to additional markets in Asian countries Pharmaceutical industry mergers, acquisitions and strategic partnerships, related to THC and more broadly Growth of subsidiary Crystal Mountain in line with the emergence of newly-opened medicinal cannabis grower markets Global group CEO Ken Charteris pleased with manufacturing progress

“Q4 2018 has been a pivotal quarter for the company focusing on developing a vertically-integrated global cannabis business and marking the company’s transition into production mode as its domestic facilities receive final licensing and permitting required,” THC Global group CEO Ken Charteris said in late January.

“We are pleased to see first plants on site at our manufacturing and cultivation site, and look forward to commencing the first stage of our manufacturing activities to support the domestic market with a view to our larger facility being used to pursue export opportunities.”

 

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Mon, 04 Mar 2019 16:30:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215672/thc-global-grows-32-in-2018-after-acquisitions-and-approvals-215672.html
<![CDATA[News - THC Global Group progressing to full-scale domestic operations ]]> https://www.proactiveinvestors.com.au/companies/news/213763/thc-global-group-progressing-to-full-scale-domestic-operations-213763.html THC Global Group Ltd (ASX:THC) is transitioning into a full-scale domestic operation having secured almost all licencing and permitting required for its farm-to-pharma business model.

The company has commenced cultivation activities having received permits for the cultivation and R&D site owned by subsidiary Canndeo.

A manufacturing licence for this site is expected shortly which will allow product validation and study trial production.

This will be in addition to the full-scale manufacturing that THC will undertake at its other manufacturing facility.

READ: THC Global appoints Mark Fortugno as CFO

THC Global’s CEO Ken Charteris said: “Q4 2018 has been a pivotal quarter for the company focussing on developing a vertically integrated global cannabis business and marking the company’s transition into production mode as its domestic facilities receive final licencing and permitting required.

“We are pleased to see first plants on site at our manufacturing and cultivation site, and look forward to commencing the first stage of our manufacturing activities to support the domestic market with a view to our larger facility being used to pursue export opportunities.”

READ: THC Global to exclusively import CBD products into New Zealand

During December 2018, the company expanded into New Zealand by securing exclusive rights to import cannabidiol (CBD) products into New Zealand.

The company’s expansion into Canada with its wholly owned subsidiary Vertical Canna Inc has also been successful.

Further expansion into Asia expected

It is also exploring strategic opportunities to the broader Asian region.

The company expects to reveal further details of these negotiations and early-stage partnerships as they develop towards commercial outcomes in the coming months.

Hydroponics equipment division expecting growth

THC Global’s hydroponics equipment division, Crystal Mountain, expects to grow significantly as the company enters the retail market to supply to micro-cultivators and other new markets.

The Crystal Mountain CEO, Jason Colquhoun has secured a number of new distribution agreements which will see distribution of Crystal Mountain’s trademarked products such as Spinpro to be distributed across the European Union commencing this March quarter.

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Fri, 01 Feb 2019 09:39:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213763/thc-global-group-progressing-to-full-scale-domestic-operations-213763.html
<![CDATA[News - THC Global appoints Mark Fortugno as CFO ]]> https://www.proactiveinvestors.com.au/companies/news/212540/thc-global-appoints-mark-fortugno-as-cfo-212540.html THC Global Group Ltd (ASX:THC) has appointed Mark Fortugno to replace Jarrod White as the company’s chief financial officer (CFO).

Fortugno has over 15 years of financial experience and is a Chartered Accountant (CA) in Australia and Canada, in addition to being a Certified Public Accountant in the US.

He has worked at KPMG (USA & Canada) in Cross Border Taxation, and as CFO for private-equity backed Cater Care in Australia

At Cater Care he was a part of its growth in headcount by 720% and revenues by 474% (to $237 million) within 5 years of his appointment.

Canadian experience relevant to growth strategy

Fortugno is a Canadian national and has significant financial management experience in Canada.

This will benefit THC Global as it grows its Canadian asset portfolio including a cannabis cultivation site in Nova Scotia, Canada to be completed shortly.

READ: THC Global shares rise after securing cannabis permits from the Office of Drug Control

THC Global’s CEO Ken Charteris said: “Mark’s specialisation in cross border transactions and implementation of high-growth strategies are a perfect mix for THC Global as we seek to aggressively expand into new regions and markets over the next 12 to 24 months in addition to transitioning into full-scale operations at our domestic cannabis production facilities.

“We look forward to working closely with him in an exciting new period of growth for THC Global.”

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Tue, 15 Jan 2019 11:17:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212540/thc-global-appoints-mark-fortugno-as-cfo-212540.html
<![CDATA[News - THC Global shares rise after securing cannabis permits from the Office of Drug Control ]]> https://www.proactiveinvestors.com.au/companies/news/211620/thc-global-shares-rise-after-securing-cannabis-permits-from-the-office-of-drug-control-211620.html THC Global Group Ltd’s (ASX:THC) wholly owned subsidiary Canndeo has received two Cannabis Permits from the Office of Drug Control (ODC) allowing the cultivation and production of THC’s proprietary high CBD (cannabidiol) strains at its Queensland growing and R&D facility.

The granting of these permits represents the next step in THC’s farm-to-pharma medicinal cannabis strategy as the company builds up cannabis plant supply for processing into cannabis oils and other medicinal cannabis products at its Australian manufacturing facility.

READ: THC Global Group completes name change from The Hydroponics Company Ltd

Further, the data gained through the research under the permits will assist in optimising yields and quality as THC pursues full-scale cultivation at its Australian growing facilities.

In addition to the permits granted by the ODC, THC has two separate manufacturing licence applications under review over two sites being the now ODC permitted growing and R&D facility, and the company’s large-scale manufacturing facility.

READ: The Hydroponics Company well placed to grow as Canada set to legalise recreational cannabis

THC chief executive officer Ken Charteris said: “The receipt of these permits is a critical step in progressing our Australian farm-to-pharma strategy and confirms expectations that THC Global will be in a position to commence full-scale production in the near term as one of the only Australian companies to have production ready facilities with licencing and permitting at an advanced stage.

“We also look forward to engaging our global commercial partners in further research and development activities on our proprietary strains as we seek to commercialise these assets in the near term.”

READ: THC Global to exclusively import CBD products into New Zealand

The successful granting of the permits provides security that THC’s operations, personnel, and procedures are acceptable to the ODC for a cannabis producing entity.

THC is in a unique position compared to almost all other participants in the domestic cannabis sector as it has fully built, production-ready facilities submitted for licencing and permitting that are able to be physically inspected by the ODC rather than seeking licencing for projects in the pre-construction phase that have multi-year build out.

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Fri, 21 Dec 2018 12:20:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211620/thc-global-shares-rise-after-securing-cannabis-permits-from-the-office-of-drug-control-211620.html
<![CDATA[News - THC Global Group enters trading halt ahead of permit issue from Office of Drug Control ]]> https://www.proactiveinvestors.com.au/companies/news/211445/thc-global-group-enters-trading-halt-ahead-of-permit-issue-from-office-of-drug-control-211445.html THC Global Group Ltd (ASX:THC) has been granted a trading halt by the ASX pending an announcement regarding the issue of permits to THC Global’s wholly-owned subsidiary Canndeo Ltd by the Department of Health’s Office of Drug Control.

The halt will remain in place until the earlier of December 21, 2018, or until an announcement is released to market.

READ: THC Global to exclusively import CBD products into New Zealand

THC Global operates under a ‘farm-to-pharma’ pharmaceutical model and is delivering medicinal cannabis products to Australian patients through existing access schemes.

Having secured significant growing capacity over two sites and an industry-leading pharmaceuticals biomanufacturing facility with testing and product development laboratory, THC Global is in prime position to service domestic and international patients.

The company’s commercial partners operate across four continents, supporting future international growth.

READ: THC Global makes move to acquire near-term Canadian cannabis producer

In addition to its core medicinal cannabis business, THC Global owns two Canadian companies, Crystal Mountain Products and Vertical Canna Inc.

Vancouver-based Crystal Mountain operates a revenue-generating global hydroponics retailer and distributor of equipment, material, and nutrients to cannabis growers and producers.

Vertical Canna is an investment vehicle through which THC Global intends to build, through acquisitions and strategic partnerships, a vertically integrated Canadian cannabis producer and retailer.

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Tue, 18 Dec 2018 21:05:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211445/thc-global-group-enters-trading-halt-ahead-of-permit-issue-from-office-of-drug-control-211445.html
<![CDATA[News - THC Global to exclusively import CBD products into New Zealand ]]> https://www.proactiveinvestors.com.au/companies/news/210077/thc-global-to-exclusively-import-cbd-products-into-new-zealand-210077.html THC Global Group Ltd (ASX:THC) has secured exclusive rights to import Endoca’s cannabidiol (CBD) products from Europe into New Zealand.

Furthermore, it has established a supply chain to patients through a strategic partnership with DATAPHARM.

THC Global has been advised by Endoca that they have received strong interest from over a thousand patients in New Zealand seeking their product.

READ: THC Global Group completes name change from The Hydroponics Company Ltd

THC Global’s CEO Ken Charteris said: “We look forward to our first orders in New Zealand in the coming weeks as we continue to expand our global footprint in the medicinal cannabis market, both in the Asia Pacific and in North America.

“The expansion into New Zealand represents the next step in the development of THC Global as a significant participant in the global medicinal cannabis market.”

Other cannabis-based medicine costs $14,000 per year

The only other MedSafe approved cannabis-based medication in New Zealand currently costs patients $14,000 per year.

THC Global anticipates supplying Endoca CBD products to New Zealand patients at a substantially lower price, addressing a major barrier to patient uptake, and increasing accessibility for patients.

Favourable regulatory conditions to support revenue growth

THC Global has identified New Zealand as an attractive market due to favourable regulatory conditions.

New Zealand regulations allow products with over 98% CBD such as the Endoca range to be prescribed by medical practitioners including GPs without the need for special authorisation as is required in Australia.

The company expects that this will result in rapid revenue generating sales as the company commences supply to patients in New Zealand.

The company’s operating subsidiary in New Zealand, THC Pharma (NZ) Limited will commence importing once permits are received, which are being sort on an expedited basis.

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Wed, 28 Nov 2018 13:10:00 +1100 https://www.proactiveinvestors.com.au/companies/news/210077/thc-global-to-exclusively-import-cbd-products-into-new-zealand-210077.html
<![CDATA[News - THC Global Group completes name change from The Hydroponics Company Ltd ]]> https://www.proactiveinvestors.com.au/companies/news/209722/thc-global-group-completes-name-change-from-the-hydroponics-company-ltd-209722.html THC Global Group Limited (ASX:THC) has completed a change of name from The Hydroponics Company Ltd with the ticker remaining as THC.

The change was approved by shareholders at the company’s extraordinary general meeting on November 15, 2018.

This name was proposed as it was considered to better reflect the strategic developments in the business and the importance of advancing established global operations and international partnerships.

READ: THC Global Group makes move to acquire near-term Canadian cannabis producer

Directors also believed it recognised the significant value THC Global was now creating and into the future, across both medicinal and recreational cannabis markets.

Chief executive officer Ken Charteris said: “THC Global is preparing to enter new international markets and secure a stronghold as a full-scale global cannabis producer.

“The name change reflects our established operations, partnerships and alliances and our global expansion plans.

“We are particularly excited by the potential to increase our revenue generation in Canada in the coming months.”

‘Farm to Pharma’ model

THC Global operates under a ‘Farm to Pharma’ pharmaceutical model and is delivering medicinal cannabis products to Australian patients through existing access schemes.

Having secured significant growing capacity over two sites and an industry-leading pharmaceuticals biomanufacturing facility with testing and product development laboratory, THC Global is in prime position to service domestic and international patients.

READ: The Hydroponics Company supplies first Australian patients prescribed cannabidiol products

The company’s commercial partners operate across four continents, supporting future international growth.

THC Global believes the new name captures the growth objectives and direction for the company as a leading medicinal cannabis business with tier one growing and manufacturing capacity in Australia and ability to supply and expand internationally.

READ: The Hydroponics Company well placed to grow as Canada set to legalise recreational cannabis

In addition to its core medicinal cannabis business, THC Global owns two Canadian companies, Crystal Mountain Products and Vertical Canna Inc.

Vancouver-based Crystal Mountain operates a revenue-generating global hydroponics retailer and distributor of equipment, material, and nutrients to cannabis growers and producers.

Vertical Canna is an investment vehicle through which THC Global intends to build, through acquisitions and strategic partnerships, a vertically integrated Canadian cannabis producer and retailer.

The company said it would continue to expand its Crystal Mountain division and continue to accelerate the build-out of its medicinal cannabis growing and manufacturing facilities under its ‘Farm to Pharma’ model.

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Thu, 22 Nov 2018 14:13:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209722/thc-global-group-completes-name-change-from-the-hydroponics-company-ltd-209722.html
<![CDATA[News - THC Global Group makes move to acquire near-term Canadian cannabis producer ]]> https://www.proactiveinvestors.com.au/companies/news/209331/thc-global-group-makes-move-to-acquire-near-term-canadian-cannabis-producer-209331.html THC Global Group Ltd (ASX:THC) has entered into a binding agreement to conduct due diligence for the acquisition of a Canadian medicinal cannabis company.

The Canadian company is in the final stages of becoming a licenced producer of cannabis.

On acquisition, THC Global will complete the build-out of a full-scale cannabis growing facility which will be able to offer direct retail sales in addition to supporting other commercial sales.

This deal provides the opportunity for THC Global to own a full-scale cannabis growing facility in Canada in addition to its Australian facilities.

READ: The Hydroponics Company supplies first Australian patients prescribed cannabidiol products

THC Global’s CEO Ken Charteris said: “THC Global is looking at entering new international markets to further cement its presence as a full-scale global cannabis producer.

“Canada is a logical next step in the company’s global expansion plans given our existing Canadian presence with Crystal Mountain Products.

“Our focus in identifying new global opportunities will be to seek acquisition assets and strategic partnerships that lead to near-term revenue generation.

“Further, the opportunity to enter the retail sector in Canada in the coming months is very attractive and will offer deep synergies with our Crystal Mountain Products business and may lead to future supply opportunities from our existing Australian production facilities.”

Plans for vertically integrated cannabis business across North America

THC Global’s objective is to pursue a build out of a vertically integrated cannabis business across North America through its subsidiary Vertical Canna Inc.

It plans to do this through strategic acquisitions and partnerships with a focus on short paths to profitability with strong potential for value development.

In parallel to this strategy, Vertical Canna is currently developing a new retail cannabis and equipment brand which will soon be available across stores in Canada.

A high-growth cannabis business

The pursuit of a stronger presence in Canada is in response to positive feedback received from the Canadian capital markets and the broader cannabis sector towards THC Global.

THC Global is as a high-growth cannabis business with the capacity to produce large quantities of pharma-grade product in the near term.

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Fri, 16 Nov 2018 11:12:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209331/thc-global-group-makes-move-to-acquire-near-term-canadian-cannabis-producer-209331.html
<![CDATA[News - The Hydroponics Company supplies first Australian patients prescribed cannabidiol products ]]> https://www.proactiveinvestors.com.au/companies/news/208372/the-hydroponics-company-supplies-first-australian-patients-prescribed-cannabidiol-products-208372.html The Hydroponics Company Ltd (ASX:THC) has supplied Endoca cannabidiol (CBD) products to its first prescribed Australian patients.

The supply has verified THC’s product pathway from manufacturer through to patient under federal authorised prescriber and special access schemes, as well as relevant state regulations.

THC is currently importing four products from Endoca’s range: Endoca’s CBD oil in 3% and 15% concentrations; and Endoca’s unique CBD-plus-CBDa oils also in 3% and 15% concentrations.

THC is also preparing to change its company name to THC Global Group Limited, with a resolution to be put forward at the company’s annual general meeting on November 15.

READ: The Hydroponics Company well placed to grow as Canada set to legalise recreational cannabis

THC chief executive officer Ken Charteris said: “The ability to secure supply of high-quality GMP-certified medicinal cannabis products to domestic patients is a key bridge to implementation of THC Global’s ‘Farm-to-Pharma’ model.

“We continue to build out our domestic infrastructure in Australia under our Farm-to-Pharma model – research, growing, manufacture and supply.”

  READ: The Hydroponics Company to change name to THC Global Group Limited

THC is building patient and prescriber awareness including sponsoring educational events to highlight the benefits of treatment with medicinal cannabis and the pathways to access the product in Australia.

As awareness increases within the domestic market, THC expects to see corresponding increases in revenue-generating product sales.

The company has also made available documentation for doctors and other prescribers to assist in prescribing Endoca’s products in Australia under the authorised prescriber and special access schemes.

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Thu, 01 Nov 2018 21:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208372/the-hydroponics-company-supplies-first-australian-patients-prescribed-cannabidiol-products-208372.html
<![CDATA[News - The Hydroponics Company well placed to grow as Canada set to legalise recreational cannabis ]]> https://www.proactiveinvestors.com.au/companies/news/207137/the-hydroponics-company-well-placed-to-grow-as-canada-set-to-legalise-recreational-cannabis-207137.html The Hydroponics Company Ltd (ASX:THC) is well-placed to benefit from the legalisation of recreational cannabis in Canada, which takes effect on Wednesday, October 17, 2018.

From this date it will be legal for adults in Canada to purchase, possess, or grow recreational cannabis, a move welcomed by THC, which intends to be renamed THC Global Group Limited.

The new Canadian policy will allow the company to expand its addressable market as part of its ‘Farm to Pharma’ strategy.

READ: The Hydroponics Company to change name to THC Global Group Limited

THC global CEO Ken Charteris commented from Canada, “This is a historic time to be in Canada, on the eve of legalisation of recreational cannabis.”

Canada is subsidiary’s principal market

THC’s wholly-owned subsidiary, Crystal Mountain, manufactures and distributes hydroponic equipment and supplies, with Canada being its principal market.

Crystal Mountain has expanded its warehouse complex and product range to meet expected demand resulting from the legalisation of recreational cannabis.

Crystal Mountain’s expanded facility in British Columbia, Canada.

“Whilst our focus remains on revenue generation from our global medicinal cannabis operations, our expanding presence in the Canadian market through Crystal Mountain and our partners will enable us to take advantage of the broadening of the Canadian market,” Charteris said.

“THC Global has a vertically integrated strategy, providing both the means to grow cannabis to micro-cultivators and home-growers from Crystal Mountain with a view towards selling cannabis products into the Canadian market.”

Duo promoting THC in Canada

Charteris and Crystal Mountain’s global head Jason Colquhoun are in Canada to promote THC to the investment community and to further develop strategic alliances across its cannabis and hydroponics businesses.

THC’s various partnerships and alliances provide the company with market access to Canada in the medicinal and recreational cannabis sectors and through hydroponics equipment.

The letter is expected to be in high demand, driven by the multitude of new micro-cultivator and home-growers in Canada.

Corporate rebranding

As part of embracing the new opportunities, Crystal Mountain will launch a new website and undertake a corporate rebranding to target Canada’s micro-cultivator and home-grower markets.

THC is also incorporating a new subsidiary, Vertical Canna Inc, which will be used as an investment and operations entity for the company’s expanded Canadian operations over the coming months.

Colquhoun said, “We are excited to be able to expand our operations to take advantage of this new opportunity in Canada.

“Combined with the launch of our new website and additional focus towards the micro-cultivator and home-grow markets, we expect to see great results over the coming quarters.”

READ: The Hydroponics Company imported medicinal cannabis products available to Australian patients

THC is a diversified global medical cannabis business that is vertically integrated from ‘farm to pharma’.

The integration begins with a growing site in northern NSW and a growing, research and development facility in Queensland.

It then flows through to an industry-leading biopharmaceutical manufacturing facility ready for pharma-grade production.

Finally, THC has established international commercial partnerships with global industry leaders across Europe, Middle East, North America and Australia.

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Tue, 16 Oct 2018 14:48:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207137/the-hydroponics-company-well-placed-to-grow-as-canada-set-to-legalise-recreational-cannabis-207137.html
<![CDATA[News - The Hydroponics Company to outline ‘farm to pharma’ cannabis strategy at CEO Session ]]> https://www.proactiveinvestors.com.au/companies/news/207038/the-hydroponics-company-to-outline-farm-to-pharma-cannabis-strategy-at-ceo-session-207038.html The Hydroponics Company Ltd’s (ASX:THC) vertically integrated ‘farm to pharma’ medicinal cannabis strategy will be outlined during the Proactive CEO Session in Sydney on Monday, October 22.

The company’s Medicinal Cannabis Division lead Andrew Beehag will make the presentation to investors.

He will also explain the reasons for the company’s intended name change to THC Global Group Limited.

READ: The Hydroponics Company to change name to THC Global Group Limited

This will be one of 14 resolutions put to shareholders to vote on at the company’s annual general meeting on November 15, 2018.

THC’s strategy begins with a growing site in northern New South Wales and a growing, research and development facility in Queensland.

It flows through to an industry-leading biopharmaceutical manufacturing facility ready for pharma-grade production.

THC also has established international commercial partnerships with global industry leaders across Europe, Middle East, North America and Australia.

READ: The Hydroponics Company imported medicinal cannabis products available to Australian patients

Beehag will also outline the company’s near-term plans to complete licensing and permitting activities on existing facilities and expand its product distribution.

He has been associated with the company from its inception in 2016, including its successful licensing and partnership alliancing with Endoca and BOL Pharma.

As a key part of the team, he has helped build THC’s successful investment and partnership strategy, gearing up THC to supply to domestic patients and the export market.

Register for the CEO Session today to find out more.

Sydney details, Monday, October 22, 2018

Also featuring will be MMJ PhytoTech Ltd (ASX:MMJ), Yandal Resources Limited (ASX:YRL), High Peak Royalties Ltd (ASX:HPR) and Minotaur Exploration Ltd (ASX:MEP).

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Mon, 15 Oct 2018 15:12:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207038/the-hydroponics-company-to-outline-farm-to-pharma-cannabis-strategy-at-ceo-session-207038.html
<![CDATA[News - The Hydroponics Company to change name to THC Global Group Limited ]]> https://www.proactiveinvestors.com.au/companies/news/206936/the-hydroponics-company-to-change-name-to-thc-global-group-limited-206936.html The Hydroponics Company Ltd (ASX:THC) will put a resolution to its shareholders to change its name to THC Global Group Limited at its upcoming annual general meeting on 15 November 2018.

The change of company name will be one of 14 resolutions put to shareholders to vote on at the meeting.

Vertical integration, from farm to pharma

THC Global is a diversified global medical cannabis business that is vertically integrated from ‘farm to pharma’.

The vertical integration begins with a growing site in northern New South Wales and a growing, research and development facility in Queensland.

It then flows through to an industry-leading biopharmaceutical manufacturing facility ready for pharma-grade production.

Finally, THC Global has established international commercial partnerships with global industry leaders across Europe, Middle East, North America and Australia.

READ: The Hydroponics Company imported medicinal cannabis products available to Australian patients

During the current December quarter, THC Global aims to complete licencing and permitting activities on existing facilities and expand its product distribution.

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Fri, 12 Oct 2018 08:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/206936/the-hydroponics-company-to-change-name-to-thc-global-group-limited-206936.html
<![CDATA[News - The Hydroponics Company imported medicinal cannabis products available to Australian patients ]]> https://www.proactiveinvestors.com.au/companies/news/201872/the-hydroponics-company-imported-medicinal-cannabis-products-available-to-australian-patients-201872.html The Hydroponics Company Ltd's (ASX:THC) wholly owned subsidiary Canndeo Limited has made its first medicinal cannabis products available to patients in Australia.

The products have been imported from THC’s European partner Endoca and are available via the Medicinal Cannabis Medicines Portal (MCMP) website.

Pharmacies and prescribers can use the website to access THC imported Endoca products.

READ: The Hydroponics Company secures lease for cannabis growing site and off-take

THC’s CEO Ken Charteris said: “We are pleased to now be delivering high-quality medicinal cannabis products to the Australian market through MCMP having leveraged our global commercial partnerships, including Endoca and Sinapse.

“Using MCMP reduces the administrative burden on prescribing doctors and pharmacies, which is currently a key challenge for the prescribing of medicinal cannabis in Australia.

“We look forward to seeing the first patients using product supplied by THC in the coming weeks.”

Advancing medicinal cannabis strategy

Carteris added: “Bringing product to the Australian market is a key step in the execution of our medicinal cannabis strategy, with imported product to be followed by THC’s domestic production taking advantage of our industry leading pharmaceuticals manufacturing facility and significant growing capacity.”

MCMP website co-founded by Canndeo

Canndeo is a founding partner of MCMP, which was developed by Sinapse Pty Ltd, a leader in pharmaceutical IT systems.

It provides a streamlined process for medicinal cannabis prescribing and dispensing between health professionals and manufacturers of medicinal cannabis.

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Tue, 31 Jul 2018 12:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201872/the-hydroponics-company-imported-medicinal-cannabis-products-available-to-australian-patients-201872.html
<![CDATA[News - The Hydroponics Company to work with Biofloral rather than acquire ]]> https://www.proactiveinvestors.com.au/companies/news/201779/the-hydroponics-company-to-work-with-biofloral-rather-than-acquire-201779.html The Hydroponics Company Ltd (ASX:THC) has elected to work together with Biofloral Inc rather than acquire the company as proposed in January this year.

Crystal Mountain Products (CMP) manufactures and distributes hydroponic equipment and supplies.

THC will continue to provide the resources required by CMP in Canada to build the business organically.

Biofloral Inc and Crystal Mountain to cross-promote across Canada

CMP and Biofloral will look to cross-promote and distribute their respective products across Canada.

CMP has a strong west coast presence and Biofloral has a strong east coast presence.

READ: The Hydroponics Company secures lease for cannabis growing site and off-take

THC’s chairman Steven Xu said: “There are obvious synergies between Crystal Mountain Products and BioFloral.

“THC is positioning itself to be able to capitalise on its Canadian business.

“We look forward to the synergies that we will achieve in working with Biofloral across Canada.”

Xu added: “THC is determined to maintain focus and implement its strategies, but not disrupt or distract the company and its management team from reaching those objectives.

“Our priorities are to establish medicinal cannabis growing, cultivation and production in Australia, for both local and international markets and to develop and increase cash flow from our hydroponics manufacture and supply division.”

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Mon, 30 Jul 2018 11:51:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201779/the-hydroponics-company-to-work-with-biofloral-rather-than-acquire-201779.html
<![CDATA[News - The Hydroponics Company secures lease for cannabis growing site and off-take ]]> https://www.proactiveinvestors.com.au/companies/news/201387/the-hydroponics-company-secures-lease-for-cannabis-growing-site-and-off-take-201387.html The Hydroponics Company Ltd (ASX:THC) has satisfied conditions precedent for the lease of a northern New South Wales property to grow strains of medicinal cannabis.

The growing site is to be established as the primary cannabis source for the company’s large-scale manufacturing facility in southern Queensland.

The land lease was one of three secured agreements that also included off-take and supply agreements with Meluka Health.

READ: The Hydroponics Company recognises value in manufacturing facility

THC’s chief executive officer Ken Charteris said: “Securing both an additional medicinal cannabis growing site and an off-take agreement further advances THC’s path to near term revenue generation from its medicinal cannabis business and complements our acquisition of an industry leading pharmaceuticals manufacturing facility.

“With both a significant growing and manufacturing capability in place, THC is even more attractive to global commercial partners who see THC as being one of the most advanced in the industry.”

The off-take agreement will see THC provide exclusive access to its medicinal cannabis for use in Meluka’s honey products.

The supply agreement provides THC with access to Meluka’s tea tree extracts for use in any future development of new medicinal cannabis products.

READ: The Hydroponics Company new directors buy shares on market

Earlier this month, THC received a vote of confidence from two recently appointed board members, who had both recently purchased shares on market.

Lou Cattelan and Gary Radcliff were voted in by shareholders as directors of the board at an extraordinary general meeting (EGM) in March 2018.

Cattelan purchased $51,323 worth of shares at an average price of 58 cents through on-market trades and Radcliff purchased $23,369 worth of shares.

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Tue, 24 Jul 2018 11:50:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201387/the-hydroponics-company-secures-lease-for-cannabis-growing-site-and-off-take-201387.html
<![CDATA[Media files - The Hydroponics Company is 'the gorilla in the room that people didn’t see coming' ]]> https://www.proactiveinvestors.com.au/companies/stocktube/9840/the-hydroponics-company-is-the-gorilla-in-the-room-that-people-didnt-see-coming--9840.html Fri, 13 Jul 2018 12:39:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/9840/the-hydroponics-company-is-the-gorilla-in-the-room-that-people-didnt-see-coming--9840.html <![CDATA[News - The Hydroponics Company new directors buy shares on market ]]> https://www.proactiveinvestors.com.au/companies/news/200720/the-hydroponics-company-new-directors-buy-shares-on-market-200720.html The Hydroponics Company Ltd (ASX:THC) has received a vote of confidence from its two recently appointed board members, who have both recently purchased shares on market.

Lou Cattelan and Gary Radcliff were voted in by shareholders as directors of the board at an extraordinary general meeting (EGM) in March 2018.

Cattelan purchased $51,323 worth of shares at an average price of 58 cents through on-market trades this week.

Similarly, Radcliff purchased $23,369 worth of shares also through on-market trades this week.

READ: The Hydroponics Company recognises value in manufacturing facility

Radcliff is a barrister and is president of the Gold Coast Bar Association.

Cattelan is a pharmaceutical executive with over 30 years experience in technical and operations management in the pharmaceutical and related industries with organisations such as Vitaplex, Soul Pattinson, Wella and Blackmores.

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Fri, 13 Jul 2018 10:50:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200720/the-hydroponics-company-new-directors-buy-shares-on-market-200720.html
<![CDATA[News - The Hydroponics Company recognises value in manufacturing facility ]]> https://www.proactiveinvestors.com.au/companies/news/200525/the-hydroponics-company-recognises-value-in-manufacturing-facility-200525.html The Hydroponics Company Ltd (ASX:THC) has received an independent valuation for its recently acquired pharmaceutical manufacturing facility in Southport, Queensland.

Notably, with land and building at acquisition price, the combined value will be recognised in THC’s June 2018 half-year accounts at $16.68 million.

The facility complements the existing licenced R&D and growing facility in Bundaberg and the 60,000 square metre growing site in northern Queensland.

READ: The Hydroponics Company forms alliance with major European supplier

THC’s chairman Steven Xu said: “Having secured significant medicinal cannabis growing capability and a manufacturing facility with industry leading capacity, THC has a clear path to a revenue generating medicinal cannabis business in the near term, with the ability to service domestic patients and export into other markets.

“Securing key commercial partners from the global medicinal cannabis industry such as Endoca, BOL Pharma, and Ascent places THC in prime position to take advantage of its production-ready capabilities.

“The increase in shareholder value from the acquisition of THC’s Southport manufacturing facility highlights THC’s prudent investment and corporate strategy.”

Attractive to global commercial partners

THC’s vertically integrated supply strategy provides a platform for international market access that is attractive to global commercial partners.

The company now has complete end-to-end growing and manufacturing facilities capable of large-scale operation to produce pharma-grade medicinal cannabis products.

READ: The Hydroponics Company growing vertically integrated business in medicinal cannabis industry

THC continues to attract, engage and retain global partners such as Endoca (Europe), BOL Pharma (Israel), and Ascent Industries (North America).

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Wed, 11 Jul 2018 10:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200525/the-hydroponics-company-recognises-value-in-manufacturing-facility-200525.html
<![CDATA[News - The Hydroponics Company forms alliance with major European supplier ]]> https://www.proactiveinvestors.com.au/companies/news/200316/the-hydroponics-company-forms-alliance-with-major-european-supplier-200316.html The Hydroponics Company Ltd (ASX:THC) has signed a binding letter of intent with Endoca BV, one of Europe’s most respected suppliers of GMP certified medicinal cannabis.

The overall objective is for development and production of CBD-based and THC-based products produced under pharmaceutical GMP from European and Australian facilities, and their supply to multiple international markets.

THC and Endoca intend to formalise their cooperation following their review and planning period over the next few months in the form of a binding agreement.

READ: The Hydroponics Company makes progress in Canada following legalisation of recreational cannabis

THC’s chairman Steven Xu said: “Our alliance with Endoca, a trusted international medicinal cannabis brand, has continued to flourish as THC’s manufacturing and growing capabilities expand domestically.

“We look forward to accelerating THC’s development through our alliance and building a truly international presence together with Endoca.”

Endoca’s CEO Henry Vincenty also said: “THC’s development in Australia has been rapid and well-targeted, particularly with its full-scale manufacturing capabilities and pharmaceutical development.

“We see great value in this alliance and are very excited to take the next steps together”.

Builds on prior relationship with Endoca

THC and Endoca are already partners, having revealed a distribution agreement in November 2017.

THC imported Endoca’s unique CBD+CBDa product and other CBD products in June 2018 for access by Australian patients under the Special Access Schemes or through authorised prescribers.

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Mon, 09 Jul 2018 10:24:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200316/the-hydroponics-company-forms-alliance-with-major-european-supplier-200316.html
<![CDATA[News - The Hydroponics Company makes progress in Canada following legalisation of recreational cannabis ]]> https://www.proactiveinvestors.com.au/companies/news/200251/the-hydroponics-company-makes-progress-in-canada-following-legalisation-of-recreational-cannabis-200251.html The Hydroponics Company Ltd’s (ASX:THC) chairman, Steven Xu and acting chief executive officer, Ken Charteris have returned from Canada where they reviewed the operations of THC subsidiaries.

Their objective was to identify the support required by THC subsidiary Crystal Mountain Products to be ready for the implementation of the Canadian Cannabis Act to legalise the use of recreational cannabis.

READ: The Hydroponics Company welcomes Canadian bill to legalise recreational cannabis

THC chairman Steven Xu said: “We see the implementation of the bill in Canada and the possible acceptance of state legislation in the USA to provide a blueprint for the future adoption of legal cannabis in Australia.

“The more we understand the changing landscape the better prepared THC will be for these changes.”

Importantly, the letter of intent with Ascent Industries Corp was negotiated during the Canadian visit and discussions continue regarding the proposed Canadian Hydroponics company acquisition.

READ: The Hydroponics Company to exchange cannabis strains with Canada’s Ascent Industries

The relationship with Ascent provides THC with access to additional cannabis strains, offtake for THC pharmaceutical grade medical cannabis and considerable information of on the medicinal cannabis market in North America.

Xu added: “There are obvious synergies for THC. THC is positioning itself to be able to capitalise on its existing Canadian business and expand its operations throughout North America.

“We look forward to developing relationships and expanding our hydroponics operations into the USA.”

THC, through its wholly owned subsidiary Crystal Mountain Products, is settling an exclusive supply agreement into Europe.

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Fri, 06 Jul 2018 14:44:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200251/the-hydroponics-company-makes-progress-in-canada-following-legalisation-of-recreational-cannabis-200251.html
<![CDATA[News - The Hydroponics Company to finalise organic cannabis land deal this month ]]> https://www.proactiveinvestors.com.au/companies/news/199986/the-hydroponics-company-to-finalise-organic-cannabis-land-deal-this-month-199986.html The Hydroponics Company Ltd (ASX:THC) has extended the due diligence period for the exclusive leasing rights for organic certified land in northern New South Wales.

The company originally entered a binding term sheet in early May 2018 with a due diligence period ending 2 July 2018, which has now been extended to 23 July 2018.

READ: The Hydroponics Company to lease land for growing medicinal cannabis

The original term sheet allowed THC to enter three agreements subject to a 60 day due diligence window.

These agreements are for exclusive rights to lease organic certified land in northern New South Wales, an off-take agreement, and a supply agreement.

Negotiations between the parties have progressed well with the parties nearing finalisation of material terms.

Establishing a medicinal cannabis supply chain

THC’s chairman Steven Xu said: “The agreements represent a substantial component in establishing THC’s supply chain for medicinal cannabis products in Australia and realising export opportunities through alliance partners.

“The finalisation of the Jenbrook and Meluka Health Agreements support THC’s roll-out of strain access including with Ascent, world-class manufacturing facilities and offtake agreements that support future Australian and International demand for medicinal cannabis.”

READ: The Hydroponics Company to exchange cannabis strains with Canada’s Ascent Industries

Elsewhere, news continues to flow after last week THC progressed its medicinal cannabis relationship with Canada’s Ascent Industries Corp to encompass the exchange of cannabis strains.

The two companies have concluded a Letter of Intent to share cannabis product and knowledge to collaboratively grow their respective businesses.

This will give THC access to Ascent’s proprietary strains of Cannabis sativa on a royalty-free basis.

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Tue, 03 Jul 2018 09:26:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199986/the-hydroponics-company-to-finalise-organic-cannabis-land-deal-this-month-199986.html
<![CDATA[News - The Hydroponics Company to exchange cannabis strains with Canada’s Ascent Industries ]]> https://www.proactiveinvestors.com.au/companies/news/199728/the-hydroponics-company-to-exchange-cannabis-strains-with-canadas-ascent-industries-199728.html The Hydroponics Company Ltd (ASX:THC) has progressed its medicinal cannabis relationship with Canada’s Ascent Industries Corp to encompass the exchange of cannabis strains.

The two companies have concluded a Letter of Intent to share cannabis product and knowledge to collaboratively grow their respective businesses.

This will give THC access to Ascent’s proprietary strains of Cannabis sativa on a royalty-free basis.

READ: The Hydroponics Company’s appointment will underpin roll-out of Endoca medicinal cannabis products

THC will grow, cultivate and manufacture these strains at its Southport GMP certified facility in Queensland.

THC’s chairman Steven Xu said: “We are pleased to progress our strategic relationship with Ascent Industries to further enhance the variety of our unique cannabis strains.

“Ascent is a leading licensed cannabis producer in Canada and through this collaboration with THC, both companies and their shareholders will benefit from significant synergies. “THC continues to solidly build its plants catalogue to ensure that we have access to the best medicinal cannabis stock available.”

Ascent supplies Aurora Cannabis

Ascent is a leading licensed producer in Canada that was recently selected by Aurora Cannabis Inc to supply its unique cannabis strains.

Ascent is annually supplying 20,000 kilograms of dried cannabis flower and up to 6,000 kilograms of cannabis trim to Aurora.

Under the new agreement, THC will also provide Ascent access to its proprietary cannabis strains that have been developed over more than 17 years.

READ: The Hydroponics Company imports first batch of medicinal cannabis oils from Europe

The companies have also agreed to negotiate an offtake agreement for THC to supply Ascent with medicinal cannabis product that it will produce at its biomanufacturing facility at Southport.

This fully operational facility was previously owned by international pharmaceutical company LEO Pharma.

It is one of the largest pharmaceutical botanicals extraction and refinement plants in the Southern Hemisphere.

Ascent chief executive officer Philip Campbell said: “We are very pleased to be engaged with THC Pharma, which is a terrific operator in the cannabis space.

"We look forward to developing our business through collaboration with THC and expanding our footprint globally to provide the highest quality products for patients and consumers in the medical and adult-use markets worldwide.”

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Thu, 28 Jun 2018 09:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199728/the-hydroponics-company-to-exchange-cannabis-strains-with-canadas-ascent-industries-199728.html
<![CDATA[News - The Hydroponics Company’s appointment will underpin roll-out of Endoca medicinal cannabis products ]]> https://www.proactiveinvestors.com.au/companies/news/199541/the-hydroponics-companys-appointment-will-underpin-roll-out-of-endoca-medicinal-cannabis-products-199541.html The Hydroponics Company Ltd’s (ASX:THC) appointment of a product and regulatory affairs manager will underpin the roll-out of Endoca’s medicinal cannabis products in Australia.

Katy Williams Day will serve in this role for THC Pharma, a wholly-owned subsidiary of THC.

She fills an essential role in THC as the company begins the landing and distribution of its first medicinal cannabis products into the Australian market from European-based Endoca.

READ: The Hydroponics Company welcomes Canadian bill to legalise recreational cannabis

THC’s chairman Steven Xu said: “We are very pleased to welcome Katy to THC Pharma as a central part of our strategy to introduce Endoca’s products into the Australian market. “Katy’s crossover experience in regulatory affairs and the challenges of new product introduction is exceptional.

“This highly suited Endoca and THC providing medicinal cannabis solutions to patients and their doctors in the near term.”

20 years of experience

Williams Day is qualified as a Master of Pharmacy with more than 20 years of experience in the regulatory, market, quality and clinical development of pharmaceutical products.

Her career includes roles as head of medical affairs, head of regulatory & scientific affairs, director of regulatory affairs and quality.

These have been with organisations including Merck Serono, Phebra, Sandoz, Pfizer and Genzyme.

READ: The Hydroponics Company growing vertically integrated business in medicinal cannabis industry

She is experienced in patient advocacy approaches critical to medicinal cannabis product adoption and maintains active engagement in MS Angels, Rare Voices, Red Cross and other patient support organisations.

Overseeing compliance and regulatory matters

Williams Day will have a lead role in the introduction of Endoca products into the Australian market, as well as overseeing compliance and regulatory matters across THC Pharma operations.

She will also leverage her extensive experience with TGA and international regulatory body submissions to progress THC Pharma’s new product range.

This will come as manufacturing via THC Pharma’s recently acquired pharmaceutical manufacturing facility comes online.

The initial shipment of medicinal cannabis oils from Endoca will be accessible to patients and healthcare professionals in Australia through the MCMP.

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Tue, 26 Jun 2018 13:58:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199541/the-hydroponics-companys-appointment-will-underpin-roll-out-of-endoca-medicinal-cannabis-products-199541.html
<![CDATA[News - The Hydroponics Company imports first batch of medicinal cannabis oils from Europe ]]> https://www.proactiveinvestors.com.au/companies/news/199450/the-hydroponics-company-imports-first-batch-of-medicinal-cannabis-oils-from-europe-199450.html The Hydroponics Company Ltd (ASX:THC) has received the first medicinal cannabis products from its strategic alliance partner in Denmark, Endoca.

The initial shipment of medicinal cannabis oils from Endoca will be accessible to patients and healthcare professionals in Australia through the Medicinal Cannabis Medicines Portal (MCMP).

The MCMP (www.mcmp.com.au) significantly streamlines the process required for doctors to prescribe medicinal cannabis to Australian patients via the Special Access Scheme.

Supply will start within weeks

THC has permits in place to begin distributing medicinal cannabis products from Endoca. Australian patients will have access under the Special Access Scheme or through an Approved Prescriber.

Supply will be available in the market within weeks.

The import of these products represents a significant development in advancing the medicinal cannabis industry in Australia, and most importantly, making high quality products available to patients in need.

THC chairman Steven Xu said: “THC’s program to bring Endoca products to Australia is the first step in providing Australia with high quality medicinal cannabis solutions, which will extend to local organic growing and pharmaceutical GMP manufacture as we roll out our partner and domestic production strategy.”

READ: The Hydroponics Company welcomes Canadian bill to legalise recreational cannabis

THC also stands to gain from the C-45 Bill that has been passed by Canada’s senate on June 7 to legalise adult recreational use of cannabis in Canada.

Canada is the largest developed nation to legalise nationwide recreational use for adults over the age of 18.

The Cannabis Act is a milestone toward the end of prohibition of recreational cannabis in Canada and is expected to be an important driver of growth for THC’s hydroponics division.

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Mon, 25 Jun 2018 15:29:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199450/the-hydroponics-company-imports-first-batch-of-medicinal-cannabis-oils-from-europe-199450.html
<![CDATA[News - The Hydroponics Company welcomes Canadian bill to legalise recreational cannabis ]]> https://www.proactiveinvestors.com.au/companies/news/198503/the-hydroponics-company-welcomes-canadian-bill-to-legalise-recreational-cannabis-198503.html The Hydroponics Company Limited (ASX:THC) stands to gain from the C-45 Bill that has been passed by Canada’s senate on June 7 to legalise adult recreational use of cannabis in Canada.

The Cannabis Act is a milestone toward the end of prohibition of recreational cannabis in Canada and is expected to be an  important driver of growth for THC’s hydroponics division.

Canada will be the largest developed nation to legalise nationwide recreational use for adults over the age of 18.

While medicinal cannabis has been legal in Canada since 2001, the recreational market has remained very fragmented without an established legal framework.

Significant opportunity to grow revenue streams in Canada

THC chairman Steven Xu said: “A decision to legalise recreational use of cannabis will open up a significant opportunity for THC to augment our established revenue streams in Canada, where we supply +600 products, have nine trademarks for hydroponic equipment and growing mediums and plan to execute potential value- accretive acquisitions that will deliver substantial revenue growth for the company in the near term.”

READ: The Hydroponics Company acquires world-class biomanufacturing facility, shares up

The company recently acquired biomanufacturing facilities in Queensland, pushing THC to the forefront of the Australian medicinal cannabis industry.

The facility is one of the largest pharmaceutical botanicals extraction and refinement plants in the Southern Hemisphere.

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Fri, 08 Jun 2018 15:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198503/the-hydroponics-company-welcomes-canadian-bill-to-legalise-recreational-cannabis-198503.html
<![CDATA[News - The Hydroponics Company growing vertically integrated business in medicinal cannabis industry ]]> https://www.proactiveinvestors.com.au/companies/news/196470/the-hydroponics-company-growing-vertically-integrated-business-in-medicinal-cannabis-industry-196470.html The Hydroponics Company Ltd (ASX:THC), has made substantial progress in the last month in the growing, manufacturing and distribution areas of its business.

THC is at the forefront of developing a leading, diversified worldwide cannabis business.

In achieving this goal, management is focused on the development and delivery of medicinal cannabis.

It is also looking to generate revenues from the manufacture and distribution of hydroponics equipment, materials and nutrients.

This strategy creates multiple revenue streams, and also optimises the company’s core business of manufacturing and distributing medicinal cannabis on a global scale.

Vertically integrated business model

THC sets itself apart from several other players looking to target the high-growth medicinal cannabis industry.

The company has made substantial progress in developing a vertically integrated business, providing it with the ability to optimise efficiencies in the manufacturing process.

THC has surrounded itself with highly experienced personnel, including Dr Michael Harrison, who has been appointed manager of the group’s newly acquired manufacturing facility.

READ: The Hydroponics Company retains manager and team from acquired biomanufacturing facility

Further to that though, THC is in a good position to manage its supply chain through the establishment of business units that take the product to the distributor’s doorstep.

Quality control keeps customers and optimises margins

Whether it be a manufacturer of auto-parts or apple pies, run the ruler across the companies that have quality manufacturing and supply chain management and you will find that they are the ones generating superior margins.

It also provides the company with the ability to closely monitor all facets of the business from product quality through to client satisfaction, providing closer relationships with end users.

Expanding manufacturing capacity

Two developments that have occurred in the last fortnight have strengthened the company’s ability to enhance and progress its vertically integrated model.

The first of these was the acquisition of production facilities of international pharmaceutical company, LEO Pharma.

READ: The Hydroponics Company acquires world-class biomanufacturing facility, shares up

In completing this transaction, the company also acquired the freehold land and buildings housing the facilities, ensuring that it wouldn’t be interrupted by developments such as lease changes.

Xu refers to acquisition as a game changer

In discussing the significance of the $2.5 million acquisition, THC chairman Steven Xu said: “This is a game-changing investment undertaken by THC providing it with large-scale, state-of-the-art biomanufacturing capabilities required to lead Australia’s medicinal cannabis industry.

“The addition of this acquisition is a major component of our roll-out strategy that will generate substantial growth for the company.”

These facilities represent one of the largest pharmaceutical botanicals extraction and refinement plants in the Southern Hemisphere.

The acquisition will enable the company to become a globally significant manufacturer of medicinal cannabis products for the Australian domestic and future export markets.

Includes technological equipment

The facility provides THC with a fully functioning biomanufacturing plant.

Focusing closely on its operational strengths, the facilities enable the extraction technology to fractionate and crystalise during the manufacturing process.

They also include a high-quality purification system that will enable Australia to produce a broad range of high-quality, pure cannabinoids as Active Pharmaceutical Ingredients.

With the Federal Government making legislative changes permitting the export of Australian manufactured medicinal cannabis products, this is an important development.

Management noted that it will improve the viability of domestic producers while securing supply for Australian patients.

This development resulted in THC’s share price increasing from 61 cents on the day prior to the announcement to an intraday high of 72 cents, a gain of 18%.

Secures additional site for cannabis growth

Consistent with establishing a vertically integrated model, it was only a week after the manufacturing plant acquisition that THC substantially expanded its growing capacity.

The company entered into a binding term sheet for the exclusive leasing rights of organic certified land in northern New South Wales.

THC proposes to use this land for the growing of medicinal cannabis subject to necessary statutory and regulatory approvals.

READ: The Hydroponics Company to lease land for growing medicinal cannabis ]]>
Mon, 07 May 2018 15:06:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196470/the-hydroponics-company-growing-vertically-integrated-business-in-medicinal-cannabis-industry-196470.html
<![CDATA[News - The Hydroponics Company retains manager and team from acquired biomanufacturing facility ]]> https://www.proactiveinvestors.com.au/companies/news/196463/the-hydroponics-company-retains-manager-and-team-from-acquired-biomanufacturing-facility-196463.html The Hydroponics Company Ltd (ASX:THC) has been able to secure a number of key personnel that previously worked at the recently acquired biomanufacturing facility in Queensland.

The company has appointed Dr Michael Harrison as the manager for the facility.

Dr Harrison was formerly employed in the same capacity by LEO Pharma, the vendor of the facility.

He will be joined by other former key LEO Pharma employees to continue to manage the facility as it transitions to a production facility producing high-purity medicinal cannabis products.

READ: The Hydroponics Company acquires world-class biomanufacturing facility, shares up

Furthermore, a wholly owned subsidiary THC Pharma Pty Ltd has been incorporated and will be led by board member Ken Charteris.

THC Pharma will expedite its applications to the Office of Drug Control for necessary approvals to both commence processing in its biomanufacturing facility and enable the growing at its New South Wales property.

Last week, the company entered into a binding term sheet allowing it to enter three agreements subject to a 60 day due diligence window.

These agreements were for exclusive rights to lease organic certified land in northern New South Wales, an off-take agreement, and a supply agreement.

READ: The Hydroponics Company to lease land for growing medicinal cannabis

THC’s chairman Steven Xu said: “THC continues to aggressively pursue its medicinal cannabis strategy to establish full-scale, vertically integrated processing and production of medicinal cannabis.

“THC has furthered this through its recent facility acquisition to build production capacity and binding term sheet securing a site for the growing of organic medicinal cannabis.

“THC, through its various business units is ensuring that the best team is retained to develop product supply for Australian patients in the near term in addition to supplying the export market as approvals are obtained.”

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Mon, 07 May 2018 12:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196463/the-hydroponics-company-retains-manager-and-team-from-acquired-biomanufacturing-facility-196463.html
<![CDATA[News - The Hydroponics Company to lease land for growing medicinal cannabis ]]> https://www.proactiveinvestors.com.au/companies/news/196387/the-hydroponics-company-to-lease-land-for-growing-medicinal-cannabis-196387.html The Hydroponics Company Ltd (ASX:THC) has entered into a binding term sheet allowing it to enter three agreements subject to a 60 day due diligence window.

These agreements are for exclusive rights to lease organic certified land in northern New South Wales, an off-take agreement, and a supply agreement.

Lease agreement to grow medicinal cannabis

The lease agreement is with Jenbrook Pty Ltd for the use of Jenbrook’s organic certified land in northern New South Wales.

THC proposes to use the property for growing medicinal cannabis subject to necessary statutory and regulatory approvals.

It is a rare USDA certified organic site incorporating a spring water resource.

Off-take agreement for medicinal cannabis

Under the medicinal cannabis off-take agreement with Meluka Health Pty Ltd, THC will provide exclusive access to its medicinal cannabis for use by Meluka Health for its Meluka Honey production.

Meluka Health is a wellness and nutrition company that develops and sells naturally derived, organic and ecologically pure products.

It is 50% owned by EVE Investments Ltd (ASX:EVE).

Meluka to supply tea tree extract to THC

Finally, the binding term sheet proposes an agreement whereby Meluka will supply its tea tree extract product to THC for use in the development of new medicinal cannabis products.

READ: The Hydroponics Company acquires world-class biomanufacturing facility, shares up

THC’s chairman Steven Xu said: “The execution of the term sheet by THC has the potential to give THC another low-cost growing facility offering high quality organic medicinal cannabis crops as well as potential synergies with the Meluka Health team to deliver new products to the market made with THC’s cannabis.

“With the acquisition of THC’s biomanufacturing facility last week, THC is now in a prime position for both expansion of its research program and to enter into production.”

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Fri, 04 May 2018 08:55:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196387/the-hydroponics-company-to-lease-land-for-growing-medicinal-cannabis-196387.html
<![CDATA[News - The Hydroponics Company boosts quarterly revenue past $1 million mark ]]> https://www.proactiveinvestors.com.au/companies/news/195915/the-hydroponics-company-boosts-quarterly-revenue-past-1-million-mark-195915.html The Hydroponics Company Ltd (ASX:THC) boosted revenue to $1.07 million in the March 2018 quarter, which extrapolates to annual revenue of $4.3 million.

Revenue for the quarter for the medicinal cannabis company was 31% higher than the $821,000 of the previous quarter.

THC’s growth is further exemplified by the fact that receipts from customers for the entire 2017 calendar year totalled $1.6 million.

Company is well-funded

The company is well-funded to advance its strategy of becoming a globally significant manufacturer of medicinal cannabis products for Australian and export markets.

As at March 31, 2018, the company had $13.2 million in cash.

READ: The Hydroponics Company assesses Canadian entity with C$20 million a year in revenues

THC is continuing its assessment of a proposed acquisition of a Canadian hydroponic business that would complement its existing Crystal Mountain-Dragon Vision business.

The parties have agreed to extend the sunset date of their negotiations to July 31, 2018, from late April.

Discussions with ASX

This will allow time to complete due diligence, obtain advice from the ASX and fulfill all statutory and regulatory requirements.

THC is also engaged in discussions with the ASX with respect to the impact Listing Rules would have on the proposed acquisition.

Successful conclusion of the acquisition would provide exposure to the rapidly growing licensed medicinal cannabis producers in the eastern states of Canada.

READ: The Hydroponics Company boosts executive team to expand medicinal cannabis strategy

The company is also looking for further opportunities, both acquisitive and organic to drive growth in the Australian and global markets.

As part of this process, earlier this week THC acquired world-class biomanufacturing facilities in Queensland.

READ: The Hydroponics Company acquires world-class biomanufacturing facility, shares up

The facility is one of the largest pharmaceutical botanicals extraction and refinement plants in the Southern Hemisphere.

It is a fully functioning biomanufacturing plant with extraction technology to produce a broad range of high quality, pure cannabinoids as Active Pharmaceutical Ingredients (API).

THC acquired the facility from international pharmaceutical company LEO Pharma, which is changing its global production plans.

Total consideration for the land and facility is $2.55 million.

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Fri, 27 Apr 2018 14:18:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195915/the-hydroponics-company-boosts-quarterly-revenue-past-1-million-mark-195915.html
<![CDATA[News - The Hydroponics Company acquires world-class biomanufacturing facility, shares up ]]> https://www.proactiveinvestors.com.au/companies/news/195803/the-hydroponics-company-acquires-world-class-biomanufacturing-facility-shares-up-195803.html The Hydroponics Company Ltd (ASX:THC) has acquired biomanufacturing facilities in Queensland for medicinal cannabis.

The acquisition pushes THC to the forefront of the Australian medicinal cannabis industry.

It prompted an 18% increase in shares to 72 cents in early trading.

The facility is one of the largest pharmaceutical botanicals extraction and refinement plants in the Southern Hemisphere.

Large-scale facility means THC can become a global player

The acquisition will enable THC to become a globally significant manufacturer of medicinal cannabis products for Australian and export markets.

The facility provides large-scale capacity required to supply the Australian medicinal cannabis industry.

THC’s chairman Steven Xu said: “This is a game-changing investment undertaken by THC providing it with large-scale, state-of-the-art biomanufacturing capabilities required to lead Australia’s medicinal cannabis industry.

“The addition of this acquisition is a major component of our roll-out strategy that will generate substantial growth for the company.”

READ: The Hydroponics Company boosts executive team to expand medicinal cannabis strategy

THC acquired the facility from international pharmaceutical company LEO Pharma, who are changing their global production plans.

Total consideration paid for the land and facility is $2.55 million.

The facility is a fully functioning biomanufacturing plant with extraction technology to produce a broad range of high quality, pure cannabinoids as Active Pharmaceutical Ingredients (API).

Importantly, THC has also secured the engagement of key personnel with expertise operating the Queensland biomanufacturing operation.

THC moving in line with legislation changes

In January 2018, Federal Government Health Minister Greg Hunt stated that the Turnbull Government would permit the export of Australian manufactured medicinal cannabis products.

When the changes were announced, Hunt said: “This decision will help both the domestic supply and Australian producers by strengthening the opportunities for domestic manufacturers.”

March quarter cash receipts surpass $1 million

Notably, the company's receipts from customers for the March quarter were $1.079 million.

This represents a 31.4% increase on the December quarter, which recorded receipts from customers of $821,000.

THC’s growth can be further exemplified by the fact that its receipts from customers for the entire 2017 calendar year totalled $1.6 million.

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Thu, 26 Apr 2018 10:18:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195803/the-hydroponics-company-acquires-world-class-biomanufacturing-facility-shares-up-195803.html
<![CDATA[News - The Hydroponics Company to make material acquisition ]]> https://www.proactiveinvestors.com.au/companies/news/195416/the-hydroponics-company-to-make-material-acquisition-195416.html The Hydroponics Company Ltd (ASX:THC) has been granted a trading halt by the ASX today pending the release of information regarding a material acquisition.

The company’s shares will remain halted until the earlier of the release of information or next Tuesday.

READ: The Hydroponics Company boosts executive team to expand medicinal cannabis strategy

Earlier this month, THC made several key executive team additions as it moved to expand its medicinal cannabis strategy in Australia and Canada.

Ken Charteris, Dr Andrew Beehag and Henry Kinstlinger have the skills and expertise to assist THC’s planned expansion internationally and in particular, in North America and Australia.

READ: The Hydroponics Company at the start of medical cannabis journey, says interim chairman

THC is at the start of a journey that will provide access to high-quality legal medical cannabis and enable many to lead better lives by relieving pain and suffering.

Last month, interim chairman Steven Xu said that THC’s success would be judged not only on successful corporate actions and great deals, but also on the benefits and developments it brings.

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Fri, 20 Apr 2018 09:48:00 +1000 https://www.proactiveinvestors.com.au/companies/news/195416/the-hydroponics-company-to-make-material-acquisition-195416.html
<![CDATA[News - The Hydroponics Company boosts executive team to expand medicinal cannabis strategy ]]> https://www.proactiveinvestors.com.au/companies/news/194900/the-hydroponics-company-boosts-executive-team-to-expand-medicinal-cannabis-strategy-194900.html The Hydroponics Company Ltd (ASX:THC) has made several key executive team additions as it seeks to expand its medicinal cannabis strategy in Australia and Canada.

Ken Charteris, Dr Andrew Beehag and Henry Kinstlinger have the skills and expertise to assist THC’s planned expansion internationally and in particular, in North America and Australia.

READ: The Hydroponics Company at the start of medical cannabis journey, says interim chairman

Chairman Steven Xu said: “THC remains focused on expanding the business, considering further opportunities in Canada as well as expanding the domestic research and manufacture potential.

“We continue to assess a number of short and long-term growth prospects and remain focused on appointing resources to lead this expansion internationally and in particular, in North America and Australia.”

International partnerships established

The company’s Australian medicinal cannabis business has secured operating licences and established valuable international partnerships and supply of product.

This is supported by a solid revenue-generating business in Canada.

THC is focused on establishing facilities for full-scale vertically integrated processing and production of medicinal cannabis.

THC’s new growing facility in Queensland.

This will enable it to supply medicinal cannabis in Australia in the near-term and achieve revenue growth in North America.

Director of Canndeo

Ken Charteris has been appointed as executive director of subsidiary Canndeo, for which he will assume operational control.

He is an internationally experienced chairman and CEO across biotech, pharmaceuticals, and construction industries with a focus on business expansion, acquisition strategy and change management.

Charteris was critical to the acquisition of Canndeo by THC and its establishment as a leader in the cannabis market.

Appointed executive consultant

Beehag has been appointed as an executive consultant working alongside Charteris with both playing major roles in THC’s securing partnership deals with Endoca and BOL Pharma.

They were also pivotal in securing two operating licences from the Office of Drug Control.

In this role, Beehag will ensure continuity in existing deals and regulatory initiatives, as well as advise on viable and monetised directions in new deals.

He brings with him significant experience in the commercialisation of new technologies and in medicinal cannabis.

Joint company secretary

Henry Kinstlinger, a highly experienced company secretary, has been appointed as joint company secretary.

in the past 30 years, he has been actively involved in the financial and corporate management of a number of ASX listed entities and non-governmental organisations.

READ: The Hydroponics Company makes board and management changes, shares jump

They join John Hall who is the senior manager and heads up THC’s cannabis facility in North Queensland and has worked with the team in obtaining the operating licences.

He has consistently focused on the readiness of THC to begin its licensed Australian medicinal cannabis operations both for the current Australian market, as well as government-announced future export potential.

The chairman said: “As one of its earliest investors and now chairman, I have seen the rapid growth of THC to its current status, positioning itself as an international contender in the global cannabis marketplace.”

THC has also appointed an executive search firm to recommend an independent chairman as well as seeking domestic and international candidates that will bring further cannabis industry experience.

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Fri, 13 Apr 2018 12:01:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194900/the-hydroponics-company-boosts-executive-team-to-expand-medicinal-cannabis-strategy-194900.html
<![CDATA[News - The Hydroponics Company at the start of medical cannabis journey, says interim chairman ]]> https://www.proactiveinvestors.com.au/companies/news/193666/the-hydroponics-company-at-the-start-of-medical-cannabis-journey-says-interim-chairman-193666.html The Hydroponics Company Ltd (ASX:THC) is at the start of a journey that will provide access to high-quality legal medical cannabis and enable many to lead better lives by relieving pain and suffering.

Interim chairman Steven Xu said that THC’s success would be judged not only on successful corporate actions and great deals, but also on the benefits and developments it brings.

READ: The Hydroponics Company makes board and management changes, shares jump

“A strong share price, satisfied shareholders and healthy dividends will naturally follow,” he said at the company’s inaugural annual general meeting.

“The development, production and supply of medical cannabis presents tremendous opportunities for growth for THC.

“Having assessed many medical cannabis companies worldwide for investment potential, I identified THC as providing a measured investment opportunity through its existing revenue prospects and clear direction,” Xu said.

Interim chairman’s report

Following are extracts from the interim chairman’s report:

It is less than 18 months since the provision of medical cannabis was legalised via changes to Australian legislation.

Since listing in 2017, THC has moved forward to bring world’s best product to Australia, while simultaneously establishing local capability to build local supply and export potential.

READ: The Hydroponics Company granted approval to import medicinal cannabis products

My fellow director Alan Beasley has researched the benefits of alternative medical treatments, including medical cannabis, for over a decade and this is a personal journey for him.

We believe medical cannabis will be a game changer for palliative care patients, sufferers of

Parkinson’s Disease, Tourette’s Syndrome, epilepsy, appetite loss and nausea for cancer patients and many other ailments.

Current medicines do not presently relieve these ailments or otherwise have side effects which may not be present in medical cannabis and can be used alongside current treatments.

Register has grown 700%

Our register has grown by over 700% since listing in May 2017 and THC now has close to 5,500 shareholders, up from 750 at listing.

Through our acquisition of Canndeo, we inherited over 17 years’ experience in the breeding, variety selection and growth management of Cannabis sativa.

This knowledge will be applied to the research, development and production of medical cannabis by THC.

We have been granted two of the three licences necessary.

The licences are issued by the Office of Drug Control and we look forward the grant of the third licence.

Growing facility in Queensland is ready

Our facility in Queensland is ready to commence cultivation of our pilot crop of medical cannabis, which will start immediately upon receipt of the appropriate government approvals.

The site has been developed to meet increasing demand for high-quality medical cannabis products for local and export markets.

Stage I of the development includes greenhouses for indoor cultivation and growth of medical cannabis, a drying and shredding facility for the initial processing of the dried plants, and an extraction laboratory for the processing of crude extract from the shredded plants.

The site will also provide an onsite laboratory for the development of new strains, as well as testing and quality control of harvested products.

The site, when fully optimised, will be scalable to meet the demands of a growing market.

Supplier agreements secured

THC has reached out and secured agreements with two leading suppliers of medical cannabis – Endoca in Denmark and BOL Pharma in Israel, each with many years’ experience and knowledge in the production of medical cannabis.

Import permits have been granted to allow the first import by THC of medical cannabis from our European partner Endoca.

Patients in Australia will have immediate access under the existing government Special Access Scheme or through an Approved Prescriber and we expect the first products to arrive from Endoca shortly.

THC will continue investigating National Access Clinics to the extent allowed by Australian regulation.

We will be working with Wesley Medical Research in their conduct of research in Tourette’s Syndrome.

We will provide medical cannabis from BOL Pharma for this purpose with the trial to commence in the second quarter this year.

BOL Pharma will also supply THC medical cannabis for general patient access once their local regulations permit and supply agreements are in place.

READ: The Hydroponics Company increases warehousing in Canada to facilitate expansion in supply

THC is keen to grow its Canadian business and has commenced a process to identify businesses that offer a synergy to THC.

Through THC’s acquisition of Crystal Mountain, our Canadian business, we have revenue from manufacturing, supply and distribution networks with strong prospects for growth.

We are working diligently to increase their product range, expand warehouse facilities and improve the online presence. We have recently expanded the sales force.

THC continues to conduct due diligence and negotiate terms for the acquisition of an additional Canadian company in the same space.

This business is complementary to the existing Crystal Mountain-Dragon Vision business and provides exposure to the rapidly growing licensed producers in the eastern states of Canada.

The future for THC is positive. We are working in a nascent disruptive industry, that will develop and grow exponentially.

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Fri, 23 Mar 2018 13:51:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193666/the-hydroponics-company-at-the-start-of-medical-cannabis-journey-says-interim-chairman-193666.html